Picking a winning trade on a consistent basis is not simply a stroke of luck. It’s the result of calculated screening, planning, and deliberation.
With this in mind, we have started a new weekly series on our top 10 stocks to watch this week — stocks that look poised for a possible breakout in the coming days. Traders should add these stocks to their watchlist now.
The Top 10 Stocks to Watch This Week for Possible Breakouts
| Sl # | Name of the Stock | Stock Ticker | Last Close | Buy Level(s) | Reason |
| 1 | Alaska Air Group Inc. | NYSE: ALK | $59.50 | $62.30 | Symmetrical Triangle Pattern Breakout |
| 2 | MINISO Group Holding Ltd ADR | NYSE: MNSO | $26.63 | $26.80 | Breakout From Consolidation Area |
| 3 | Petroleo Brasileiro S.A. Petrobras ADR | NYSE: PBR.A | $11.42 | $12.00 | Symmetrical Triangle Pattern |
| 4 | Alphabet Inc. | NASDAQ: GOOGL | $206.09 | $208.00 | Ascending Triangle Pattern |
| 5 | SharpLink Gaming Inc. | NASDAQ: SBET | $20.87 | $24.60 | Symmetrical Triangle Pattern Breakout |
| 6 | F.N.B. Corp | NYSE: FNB | $16.50 | $16.70 | IH&S Pattern Breakout |
| 7 | PDD Holdings Inc ADR | NASDAQ: PDD | $127.11 | $129.10 | Symmetrical Triangle Pattern Breakout |
| 8 | Amer Sports Inc. | NYSE: AS | $41.48 | $42.00 | Breakout From Consolidation Area |
| 9 | XPeng Inc ADR | NYSE: XPEV | $23.75 | $24.00 | Symmetrical Triangle Pattern Breakout |
| 10 | Comcast Corp. | NASDAQ: CMCSA | $34.15 | $35.80 | Downtrend Channel |
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 Alaska Air Group Inc. (NYSE: ALK)
Sector: Industrials • Airlines
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 ALK is if the stock closes above the immediate resistance level of $62.30. This is marked in the chart below as a green color dotted line.
Daily chart – ALK
ALK – Symmetrical Triangle Pattern Breakout
#2 MINISO Group Holding Ltd ADR (NYSE: MNSO)
Sector: Consumer Cyclical • Specialty Retail
Reason: Breakout From a Consolidation Area in the Daily Chart
A Consolidation Area is a price action contained between two parallel lines. It is formed by a lower line that connects the lows, and an upper line that joins the highs. A stock usually trades between the two lines of the consolidation area before finally breaking out from the upper rail.
Buy Level(s): Although the stock has currently broken out of a consolidation area, the ideal buy level for MNSO is above the near-term resistance area, which translates to a price of around $26.80. This is marked in the chart below as a green color dotted line.
Daily chart – MNSO
MNSO – Breakout From Consolidation Area
#3 Petroleo Brasileiro S.A. Petrobras ADR (NYSE: PBR.A)
Sector: Energy • Oil & Gas Integrated
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 PBR.A is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $12.00. This is marked in the chart below as a green color dotted line.
Daily chart – PBR.A
PBR.A – Symmetrical Triangle Pattern
#4 Alphabet Inc. (NASDAQ: GOOGL)
Sector: Communication Services • Internet Content & Information
Reason: Formation of an Ascending Triangle Pattern
An ascending triangle pattern is a bullish pattern formed by drawing a horizontal line along the swing highs, and a rising trendline along the swing lows. These two lines result in the formation of a triangle. A breakout from this pattern is typically a strong bullish indication.
Buy Level(s): The ideal buy level for GOOGL is if the stock breaks out of the ascending triangle pattern and has a daily close above the near-term resistance level of $208.00. This is marked in the chart below as a green color dotted line.
Daily chart – GOOGL
GOOGL – Ascending Triangle Pattern
#5 SharpLink Gaming Inc. (NASDAQ: SBET)
Sector: Consumer Cyclical • Gambling
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 SBET is if the stock closes above the immediate resistance level of $24.60. This is marked in the chart below as a green color dotted line.
Daily chart – SBET
SBET – Symmetrical Triangle Pattern Breakout
#6 F.N.B. Corp (NYSE: FNB)
Sector: Financial • Banks – Regional
Reason: IH&S Pattern Breakout
An Inverted Head and Shoulders pattern resembles the shape of a person’s head and two shoulders in an inverted position, with three consistent lows and peaks. A breakout from the pattern usually indicates the end of bearish phase and onset of an uptrend.
Buy Level(s): The stock has currently broken out of an IH&S pattern. However, the ideal buy level for FNB is above the nearest resistance level of $16.70. This is marked in the chart below as a green color dotted line.
Daily chart – FNB
FNB – IH&S Pattern Breakout
#7 PDD Holdings Inc ADR (NASDAQ: PDD)
Sector: Consumer Cyclical • Internet Retail
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 PDD is if the stock closes above the immediate resistance level of $129.10. This is marked in the chart below as a green color dotted line.
Daily chart – PDD
PDD – Symmetrical Triangle Pattern Breakout
#8 Amer Sports Inc. (NYSE: AS)
Sector: Consumer Cyclical • Leisure
Reason: Breakout From a Consolidation Area in the Daily Chart
A Consolidation Area is a price action contained between two parallel lines. It is formed by a lower line that connects the lows, and an upper line that joins the highs. A stock usually trades between the two lines of the consolidation area before finally breaking out from the upper rail.
Buy Level(s): Although the stock has currently broken out of a consolidation area, the ideal buy level for AS is above the near-term resistance area, which translates to a price of around $42.00. This is marked in the chart below as a green color dotted line.
Daily chart – AS
AS – Breakout From Consolidation Area
#9 XPeng Inc ADR (NYSE: XPEV)
Sector: Consumer Cyclical • Auto Manufacturers
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 XPEV is if the stock closes above the immediate resistance level of $24.00. This is marked in the chart below as a green color dotted line.
Daily chart – XPEV
XPEV – Symmetrical Triangle Pattern Breakout
#10 Comcast Corp. (NASDAQ: CMCSA)
Sector: Communication Services • Telecom Services
Reason: Formation of a Downtrend Channel
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 is currently forming a downtrend channel. The ideal buy level for CMCSA is if the stock breaks out of the downtrend channel and has a daily close above $35.80. This is marked in the chart below as a green color dotted line.
Daily chart – CMCSA
CMCSA – Downtrend Channel
Happy Trading!
Trades of The Day Research Team
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