The Top 10 Stocks to Watch This Week for Possible Breakouts

Not one momentum trade on this week’s list.

The table usually has a few flag patterns — names you buy because they’re already winning, breakouts extending a run. This week has none. Zero flags, zero continuation setups. Every name is either coiling in a base or turning up out of a downtrend.

The split is almost too clean: five consolidation bases — Alphabet, Ambarella, Antero, Pagaya, and Blue Owl — compressing toward a trigger, and five reversals — Alibaba, Vermilion, Chevron, BP, and DexCom — where the trade is a beaten-down or range-bound name trying to turn. Nobody here is extended.

That’s a different watchlist than we’ve run recently. After stretches of chasing strength, this one is built on patience — names that haven’t moved yet, or names climbing back from weakness.

Seven of the ten have already cleared their pattern and sit at a secondary trigger above resistance. The other three — Alphabet, Chevron, and Blue Owl — are still inside, waiting for the first break. Same discipline either way: the daily close above the buy level, not the intraday tap.

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 Alphabet Inc. (NASDAQ: GOOGL)

Sector: Communication Services • Internet Content & Information

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 GOOGL is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $362.00. This is marked in the chart below as a green color dotted line.

Daily chart – GOOGL

#2 Alibaba Group Holding Ltd. (NYSE: BABA)

Sector: Consumer Cyclical • Internet Retail

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 BABA is if the stock has a daily close above $123.70. This is marked in the chart below as a green color dotted line.

Daily chart – BABA

#3 DexCom, Inc. (NASDAQ: DXCM)

Sector: Healthcare • Medical Devices

Reason: Rising Wedge Pattern Breakout

A rising wedge pattern is formed by joining two upward-sloping, converging trendlines having a contracting range. The pattern appears to be wide at the bottom and continues to contract as prices rise. A breakout from a rising wedge pattern is often associated with high momentum and can signal an extended move. However, buying on this breakout is considered a more speculative trade due to the potential for a reversal.

Buy Level(s): The stock has currently broken out of a rising wedge pattern. However, the ideal buy level for DXCM is above the nearest resistance level of $85.00. This is marked in the chart below as a green color dotted line.

Daily chart – DXCM

#4 Ambarella, Inc. (NASDAQ: AMBA)

Sector: Technology • Semiconductor Equipment & Materials

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 AMBA is if the stock closes above the immediate resistance level of $88.20. This is marked in the chart below as a green color dotted line.

Daily chart – AMBA

#5 Vermilion Energy Inc. (NYSE: VET)

Sector: Energy • Oil & Gas Exploration & Production

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 VET is if the stock has a daily close above $12.30. This is marked in the chart below as a green color dotted line.

Daily chart – VET

#6 Antero Resources Corporation (NYSE: AR)

Sector: Energy • Oil & Gas Exploration & Production

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 AR is if the stock closes above the immediate resistance level of $36.70. This is marked in the chart below as a green color dotted line.

Daily chart – AR

#7 Chevron Corporation (NYSE: CVX)

Sector: Energy • Oil & Gas Integrated

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 CVX is if the stock breaks out of the downtrend channel and has a daily close above $198.00. This is marked in the chart below as a green color dotted line.

Daily chart – CVX

#8 Blue Owl Capital Inc. (NYSE: OWL)

Sector: Financial Services • Asset Management

Reason: Formation of 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): The ideal buy level for OWL is above the breakout level of the consolidation area, at around $10.80. This is marked in the chart below as a green color dotted line.

Daily chart – OWL

#9 Pagaya Technologies Ltd. (NASDAQ: PGY)

Sector: Financial Services • Credit 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 PGY is if the stock closes above the immediate resistance level of $19.80. This is marked in the chart below as a green color dotted line.

Daily chart – PGY

#10 BP p.l.c. (NYSE: BP)

Sector: Energy • Oil & Gas Integrated

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 BP is if the stock has a daily close above $45.80. This is marked in the chart below as a green color dotted line.

Daily chart – BP

Ten names, two characters. Five consolidation bases — Alphabet, Ambarella, Antero, Pagaya, and Blue Owl — coiled and waiting for the trigger to fire. And five reversals — Alibaba, Vermilion, Chevron, BP, and DexCom — beaten-down or range-bound names trying to turn back up.

What ties them together is what’s missing: not a single momentum-continuation setup in the group. That makes this a patience list, not a chase list. The edge comes from waiting for the trigger, not front-running it — a clean daily close above the buy level listed alongside each ticker. Not the open. Not the intraday high. The close.

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

Happy Trading!
Tara and Greg