The Top 10 Stocks to Watch This Week for Possible Breakouts

There isn’t a single technology stock on this week’s list. No semiconductors, no software, no AI infrastructure — not one name from the group that’s driven most of this year’s breakout watchlists.

What’s on the table instead is an income-and-value lineup. Three financials (BlackRock, Travelers, Marsh & McLennan), two energy names (Expand Energy, Kinder Morgan), two consumer defensives (FEMSA, British American Tobacco), two industrials (L3Harris, Ryerson), and one healthcare name (Alkermes). Insurance shows up twice, tobacco once, pipelines once. These are cash-flow businesses, not growth stories.

Eight of the ten have already broken out of their primary patterns. The two still inside — Alkermes and Expand Energy — are the only anticipation setups on the table. Everything else is a confirmation trade, waiting on buyers to defend a breakout that’s already fired.

The triggers back that up. The eight confirmed names all sit within about 1.5% of their buy levels — tight, which makes the daily-close discipline easy to enforce. Alkermes and Expand Energy sit a little further out, which is exactly what you’d expect from setups that haven’t triggered yet.

Here are the 10 stocks we’re watching this week, in no particular order.

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 BlackRock, Inc. (NYSE: BLK)

Sector: Financial Services • Asset Management

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 BLK is if the stock closes above the immediate resistance level of $1,140.00. This is marked in the chart below as a green color dotted line.

Daily chart – BLK

#2 L3Harris Technologies, Inc. (NYSE: LHX)

Sector: Industrials • Aerospace & Defense

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 LHX is above the nearest resistance level of $252.00. This is marked in the chart below as a green color dotted line.

Daily chart – LHX

#3 The Travelers Companies, Inc. (NYSE: TRV)

Sector: Financial Services • Insurance – Property & Casualty

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 TRV is above the near-term resistance level of $393.00. This is marked in the chart below as a green color dotted line.

Daily chart – TRV

#4 Alkermes plc (Nasdaq: ALKS)

Sector: Healthcare • Drug Manufacturers – Specialty & Generic

Reason: Formation of a Symmetrical Triangle Pattern

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 ideal buy level for ALKS is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $43.20. This is marked in the chart below as a green color dotted line.

Daily chart – ALKS

#5 Expand Energy Corporation (Nasdaq: EXE)

Sector: Energy • Oil & Gas E&P

Reason: Downtrend Channel Pattern

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 ideal buy level for EXE is if the stock breaks out of the downtrend channel and closes above the price of $95.40. This is marked in the chart below as a green color dotted line.

Daily chart – EXE

#6 Fomento Económico Mexicano, S.A.B. de C.V. (NYSE: FMX)

Sector: Consumer Defensive • Beverages – Brewers

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 FMX is above the near-term resistance level of $128.00. This is marked in the chart below as a green color dotted line.

Daily chart – FMX

#7 British American Tobacco p.l.c. (NYSE: BTI)

Sector: Consumer Defensive • Tobacco

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 BTI is if the stock has a daily close above $60.40. This is marked in the chart below as a green color dotted line.

Daily chart – BTI

#8 Ryerson Holding Corporation (NYSE: RYZ)

Sector: Industrials • Metal Fabrication

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 RYZ is if the stock closes above the immediate resistance level of $27.80. This is marked in the chart below as a green color dotted line.

Daily chart – RYZ

#9 Kinder Morgan, Inc. (NYSE: KMI)

Sector: Energy • Oil & Gas Midstream

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 KMI is if the stock has a daily close above $34.50. This is marked in the chart below as a green color dotted line.

Daily chart – KMI

#10 Marsh & McLennan Companies, Inc. (NYSE: MRSH)

Sector: Financial Services • Insurance Brokers

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 MRSH is if the stock closes above the immediate resistance level of $189.40. This is marked in the chart below as a green color dotted line.

Daily chart – MRSH

Ten names, five sectors, and not a technology stock among them. Three financials, two energy, two consumer defensive, two industrials, one healthcare — a watchlist built out of cash flow rather than growth. Insurance, pipelines, tobacco, asset management: the kind of names that pay you to wait.

Eight have already broken out; only Alkermes and Expand Energy are still inside their patterns. But the trade is the same across all ten — a clean daily close above the buy level listed alongside each ticker. Not the intraday tap. Not the open. The close. With most triggers sitting within a point or two of current price, that discipline is easy to hold this week.

We’ll watch the table this week and let the names sort themselves out.

Happy Trading!
Tara and Greg