The Top 10 Stocks to Watch This Week for Possible Breakouts

This week’s list runs small and speculative.

Six of the ten names closed under $25, and four come from healthcare — three of those are biotech, the highest-octane corner of the tape. Only two names, AeroVironment and Amazon, trade in triple digits. Everything else sits in the kind of price range where a single catalyst can move the whole chart.

That gives the list a distinct risk character. These are higher-beta names — the setups can pay quickly, but they can also fail quickly. The discipline matters more here, not less.

Seven of the ten have already broken out of their patterns. Three — Bentley Systems, Hecla Mining, and Amazon — are still inside, waiting for the trigger to fire.

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 Bentley Systems Inc. (NASDAQ: BSY)

Sector: Technology • Software – Application

Reason: Formation of a Falling Wedge Pattern

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 ideal buy level for BSY is if the stock breaks out of the falling wedge pattern, at a price of around $33.80. This is marked in the chart below as a green color dotted line.

Daily chart – BSY

#2 CRISPR Therapeutics AG (NASDAQ: CRSP)

Sector: Healthcare • Biotechnology

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 CRSP is if the stock closes above the immediate resistance level of $61.70. This is marked in the chart below as a green color dotted line.

Daily chart – CRSP

#3 Vor Biopharma Inc. (NASDAQ: VOR)

Sector: Healthcare • Biotechnology

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 VOR is above the near-term resistance area, which translates to a price of around $21.00. This is marked in the chart below as a green color dotted line.

Daily chart – VOR

#4 Waystar Holding Corp (NASDAQ: WAY)

Sector: Healthcare • Health Information Services

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 WAY is above the nearest resistance level of $24.00. This is marked in the chart below as a green color dotted line.

Daily chart – WAY

#5 DLocal Limited. (NASDAQ: DLO)

Sector: Technology • Software – Infrastructure

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 DLO is if the stock has a daily close above $15.10. This is marked in the chart below as a green color dotted line.

Daily chart – DLO

#6 Hecla Mining Co. (NYSE: HL)

Sector: Basic Materials • Other Precious Metals & Mining

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 HL is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $17.80. This is marked in the chart below as a green color dotted line.

Daily chart – HL

#7 AeroVironment Inc. (NASDAQ: AVAV)

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 AVAV is above the nearest resistance level of $196.70. This is marked in the chart below as a green color dotted line.

Daily chart – AVAV

#8 Tenax Therapeutics Inc. (NASDAQ: TENX)

Sector: Healthcare • Biotechnology

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 TENX is if the stock closes above the immediate resistance level of $16.00. This is marked in the chart below as a green color dotted line.

Daily chart – TENX

#9 Slide Insurance Holdings Inc. (NASDAQ: SLDE)

Sector: Financial • Insurance – Property & Casualty

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 SLDE is above the near-term resistance area, which translates to a price of around $21.70. This is marked in the chart below as a green color dotted line.

Daily chart – SLDE

#10 Amazon.com Inc. (NASDAQ: AMZN)

Sector: Consumer Cyclical • Internet Retail

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 AMZN is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $248.20. This is marked in the chart below as a green color dotted line.

Daily chart – AMZN

Ten names, one common thread: this is a higher-beta watchlist. Four healthcare names — CRISPR, Vor, Waystar, and Tenax — anchor the speculative end, with DLocal, Hecla, and Slide filling out the lower-priced names. AeroVironment and Amazon are the two large-cap anchors, and Bentley sits in between.

That risk character cuts both ways. Lower-priced, catalyst-driven names can trigger and run fast — and they can just as easily fail the breakout and give it all back. Which is exactly why the rule doesn’t bend: a clean daily close above the buy level listed alongside each ticker. Not the intraday tap. Not the open. The close.

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

Happy Trading!
Tara and Greg