Most weeks the screen is looking for strength that wants to keep going. This week it’s looking for turns.
Only three of the ten names on this week’s table are straight continuation setups — a stock already trending higher, pausing, getting ready to resume. Dynatrace, CCC, and Humana. The other seven aren’t riding momentum. They’re trying to change direction.
Four of them — Mirion, Nu Holdings, On Holding, and V.F. Corp — are breaking up out of downtrends: two downtrend-channel breakouts and two falling wedges. The other three — Ciena, TAL Education, and Snap — are symmetrical triangles, where the stock has been stuck in indecision and is only now resolving. Turns and standoffs, not trends.
The list skews low-dollar, too. Six of the ten trade under $20, a couple in single digits. These are mostly out-of-favor names making the case that the low is in — exactly the kind of setup that pays well when it works and punishes you when you’re early.
One thing is consistent across all ten: every name has already cleared its primary pattern. The buy level in each row isn’t the first test, it’s a second one — a near-term resistance just overhead. A daily close above it is what tells you the turn is real and not just a bounce.
Here are the 10 stocks we’re watching this week, in no particular order.
| Sl # | Name of the Stock | Stock Ticker | Last Close | Buy Level(s) | Reason |
|---|---|---|---|---|---|
| 1 | Ciena Corporation | NYSE: CIEN | $449.77 | $452.50 | Symmetrical Triangle Pattern Breakout |
| 2 | Dynatrace, Inc. | NYSE: DT | $63.50 | $64.00 | Uptrend Channel Breakout |
| 3 | Mirion Technologies, Inc. | NYSE: MIR | $16.62 | $17.10 | Downtrend Channel Breakout |
| 4 | TAL Education Group | NYSE: TAL | $12.86 | $13.00 | Symmetrical Triangle Pattern Breakout |
| 5 | CCC Intelligent Solutions Holdings Inc. | Nasdaq: CCC | $7.02 | $7.20 | Flag Pattern Breakout |
| 6 | Nu Holdings Ltd. | NYSE: NU | $16.12 | $16.50 | Downtrend Channel Breakout |
| 7 | Snap Inc. | NYSE: SNAP | $6.23 | $6.40 | Symmetrical Triangle Pattern Breakout |
| 8 | On Holding AG | NYSE: ONON | $35.09 | $36.00 | Falling Wedge Pattern Breakout |
| 9 | Humana Inc. | NYSE: HUM | $431.87 | $439.60 | Flag Pattern Breakout |
| 10 | V.F. Corporation | NYSE: VFC | $15.00 | $15.50 | Falling Wedge Pattern Breakout |
If needed, swipe or scroll sideways to view the full table.
Important: Typically, these trades offer a risk: reward ratio of 1:2 or 1:3 in the next 6 months, which implies 2x to 3x rewards when compared to risks. So, be sure to set your stop-loss levels and target prices accordingly to manage your risk. In addition, these trade ideas are triggered using daily closing prices, not intra-day pricing. So, if you participate in these trades, make sure that you only buy the stock once its daily close is above the recommended price level.
That said, here are the top 10 stocks to watch for a breakout, in no particular order.
#1 Ciena Corporation (NYSE: CIEN)
Sector: Technology • Communication Equipment
Reason: Symmetrical Triangle Pattern Breakout
A symmetrical triangle is a chart pattern formed by two converging trend lines connecting a series of sequential peaks and troughs. These two lines result in the formation of a triangle that appears to be symmetrical.
A symmetrical triangle pattern is usually formed when there is indecision in the price movements and there is uncertainty among the buyers and sellers. This chart pattern represents a period of consolidation before the price breaks out or breaks down. In case a breakout occurs from the upper trend line, it is a strong bullish indication as it signifies the start of a new bullish trend.
Buy Level(s): The stock has currently broken out of a symmetrical triangle pattern. However, the ideal buy level for CIEN is if the stock closes above the immediate resistance level of $452.50. This is marked in the chart below as a green color dotted line.
Daily chart – CIEN
CIEN – Symmetrical Triangle Pattern Breakout
#2 Dynatrace, Inc. (NYSE: DT)
Sector: Technology • Software – Application
Reason: Breakout From an Uptrend Channel
An uptrend channel or an ascending channel is the price action contained between upward sloping parallel lines. It is formed by a lower trend line that connects the swing lows, and an upper channel line that joins the swing highs. A stock usually trades between the two rails of the uptrend channel before finally breaking out from the upper rail.
Buy Level(s): The stock has currently broken out of the uptrend channel. However, the ideal buy level for DT is if the stock has a daily close above the near-term resistance level of $64.00. This is marked in the chart below as a green color dotted line.
Daily chart – DT
DT – Uptrend Channel Breakout
#3 Mirion Technologies, Inc. (NYSE: MIR)
Sector: Industrials • Specialty Industrial Machinery
Reason: Downtrend Channel Breakout
A downtrend or descending channel is the price action contained between downward sloping parallel lines. It is formed by two lines that are drawn by connecting the lower highs and lower lows of a stock’s price. Even though this is typically a bearish pattern, a breakout from the upper rail of this pattern is considered a good bullish indication.
Buy Level(s): The daily chart shows that the stock has currently broken out of a downtrend channel. However, there is a near-term resistance level for the stock. Hence, the ideal buy level for MIR is if the stock has a daily close above $17.10. This is marked in the chart below as a green color dotted line.
Daily chart – MIR
MIR – Downtrend Channel Breakout
#4 TAL Education Group (NYSE: TAL)
Sector: Consumer Staples • Education & Training Services
Reason: Symmetrical Triangle Pattern Breakout
A symmetrical triangle is a chart pattern formed by two converging trend lines connecting a series of sequential peaks and troughs. These two lines result in the formation of a triangle that appears to be symmetrical.
A symmetrical triangle pattern is usually formed when there is indecision in the price movements and there is uncertainty among the buyers and sellers. This chart pattern represents a period of consolidation before the price breaks out or breaks down. In case a breakout occurs from the upper trend line, it is a strong bullish indication as it signifies the start of a new bullish trend.
Buy Level(s): The stock has currently broken out of a symmetrical triangle pattern. However, the ideal buy level for TAL is if the stock closes above the immediate resistance level of $13.00. This is marked in the chart below as a green color dotted line.
Daily chart – TAL
TAL – Symmetrical Triangle Pattern Breakout
#5 CCC Intelligent Solutions Holdings Inc. (Nasdaq: CCC)
Sector: Technology • Software – Application
Reason: Breakout From a Flag Pattern
A flag pattern is a short-term continuation pattern that marks a small consolidation before the previous move resumes. The pattern is formed when the market consolidates in a narrow range after a sharp move. For a stock in an uptrend, a breakout from this pattern is typically a strong bullish indication.
Buy Level(s): Although the stock has currently broken out of the flag pattern, the ideal buy level for CCC is above the near-term resistance level of $7.20. This is marked in the chart below as a green color dotted line.
Daily chart – CCC
CCC – Flag Pattern Breakout
#6 Nu Holdings Ltd. (NYSE: NU)
Sector: Financials • Banks – Regional
Reason: Downtrend Channel Breakout
A downtrend or descending channel is the price action contained between downward sloping parallel lines. It is formed by two lines that are drawn by connecting the lower highs and lower lows of a stock’s price. Even though this is typically a bearish pattern, a breakout from the upper rail of this pattern is considered a good bullish indication.
Buy Level(s): The daily chart shows that the stock has currently broken out of a downtrend channel. However, there is a near-term resistance level for the stock. Hence, the ideal buy level for NU is if the stock has a daily close above $16.50. This is marked in the chart below as a green color dotted line.
Daily chart – NU
NU – Downtrend Channel Breakout
#7 Snap Inc. (NYSE: SNAP)
Sector: Communication Services • Internet Content & Information
Reason: Symmetrical Triangle Pattern Breakout
A symmetrical triangle is a chart pattern formed by two converging trend lines connecting a series of sequential peaks and troughs. These two lines result in the formation of a triangle that appears to be symmetrical.
A symmetrical triangle pattern is usually formed when there is indecision in the price movements and there is uncertainty among the buyers and sellers. This chart pattern represents a period of consolidation before the price breaks out or breaks down. In case a breakout occurs from the upper trend line, it is a strong bullish indication as it signifies the start of a new bullish trend.
Buy Level(s): The stock has currently broken out of a symmetrical triangle pattern. However, the ideal buy level for SNAP is if the stock closes above the immediate resistance level of $6.40. This is marked in the chart below as a green color dotted line.
Daily chart – SNAP
SNAP – Symmetrical Triangle Pattern Breakout
#8 On Holding AG (NYSE: ONON)
Sector: Consumer Discretionary • Footwear & Accessories
Reason: Falling Wedge Pattern Breakout
A falling wedge pattern is formed by joining two downward-sloping, converging trendlines having a contracting range. The pattern appears to be wide at the top and continues to contract as prices fall. A breakout from a falling wedge pattern can indicate either reversal or continuation depending on where the pattern appeared in the trend.
A stock that has broken out of a falling wedge pattern would have gained momentum and would have the potential to move higher.
Buy Level(s): The stock has currently broken out of a falling wedge pattern. However, the ideal buy level for ONON is above the nearest resistance level of $36.00. This is marked in the chart below as a green color dotted line.
Daily chart – ONON
ONON – Falling Wedge Pattern Breakout
#9 Humana Inc. (NYSE: HUM)
Sector: Healthcare • Healthcare Plans
Reason: Breakout From a Flag Pattern
A flag pattern is a short-term continuation pattern that marks a small consolidation before the previous move resumes. The pattern is formed when the market consolidates in a narrow range after a sharp move. For a stock in an uptrend, a breakout from this pattern is typically a strong bullish indication.
Buy Level(s): Although the stock has currently broken out of the flag pattern, the ideal buy level for HUM is above the near-term resistance level of $439.60. This is marked in the chart below as a green color dotted line.
Daily chart – HUM
HUM – Flag Pattern Breakout
#10 V.F. Corporation (NYSE: VFC)
Sector: Consumer Discretionary • Apparel Manufacturing
Reason: Falling Wedge Pattern Breakout
A falling wedge pattern is formed by joining two downward-sloping, converging trendlines having a contracting range. The pattern appears to be wide at the top and continues to contract as prices fall. A breakout from a falling wedge pattern can indicate either reversal or continuation depending on where the pattern appeared in the trend.
A stock that has broken out of a falling wedge pattern would have gained momentum and would have the potential to move higher.
Buy Level(s): The stock has currently broken out of a falling wedge pattern. However, the ideal buy level for VFC is above the nearest resistance level of $15.50. This is marked in the chart below as a green color dotted line.
Daily chart – VFC
VFC – Falling Wedge Pattern Breakout
Ten names, and only three of them chasing a trend. The rest are turns: four breakouts up out of downtrends — Mirion, Nu Holdings, On Holding, V.F. Corp — and three symmetrical triangles finally resolving — Ciena, TAL, Snap. A reversal-heavy, lower-dollar list is a higher-variance list by nature. That’s not a reason to avoid it; it’s a reason to be strict about entries.
And the entries are already defined for you. Every one of these ten has broken its primary pattern, so the buy level in the table is the second gate — a near-term resistance, not the first breakout. The signal is the same in all ten rows: a clean daily close above that level. Not the intraday tap. Not the open. The close. On a turnaround setup, that daily close is the line between a real reversal and a dead-cat bounce.
We’ll watch the table this week and let the names sort themselves out.
Happy Trading!
Tara and Greg
