Half of this week’s list is software. Most of it hasn’t broken out yet.
Five of the ten names — AvePoint, Figma, Pegasystems, Autodesk, and SailPoint — are all Technology • Software. But three of those five are still sitting inside their patterns, waiting for the trigger to fire. Only Pegasystems and Autodesk have already broken out.
The breakouts that have fired are mostly somewhere else. Solstice in materials, Strive in financials, Kraft Heinz in staples — three of the five confirmed setups sit outside tech entirely.
So the list splits into two jobs. Watch the software names for the breakout to happen. Watch the already-broken-out names to see whether buyers defend it. The discipline is identical either way: a daily close above the buy level in the table.
Both jobs, one table. 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 | AvePoint, Inc. | Nasdaq: AVPT | $14.00 | $14.40 | Symmetrical Triangle Pattern |
| 2 | Solstice Advanced Materials Inc. | Nasdaq: SOLS | $63.53 | $66.00 | Falling Wedge Pattern Breakout |
| 3 | Figma, Inc. | NYSE: FIG | $28.82 | $31.70 | Consolidation Area |
| 4 | Pegasystems Inc. | Nasdaq: PEGA | $36.17 | $37.00 | Downtrend Channel Breakout |
| 5 | Autodesk, Inc. | Nasdaq: ADSK | $260.66 | $272.00 | Symmetrical Triangle Pattern Breakout |
| 6 | Strive, Inc. | Nasdaq: ASST | $21.74 | $23.40 | Falling Wedge Pattern Breakout |
| 7 | Green Plains, Inc. | Nasdaq: GPRE | $14.66 | $15.00 | Symmetrical Triangle Pattern |
| 8 | The Kraft Heinz Company | Nasdaq: KHC | $25.70 | $25.90 | Flag Pattern Breakout |
| 9 | Celsius Holdings, Inc. | Nasdaq: CELH | $32.98 | $35.50 | Downtrend Channel |
| 10 | SailPoint, Inc. | Nasdaq: SAIL | $19.83 | $20.50 | Symmetrical Triangle Pattern |
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 AvePoint, Inc. (Nasdaq: AVPT)
Sector: Technology • Software
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 AVPT is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $14.40. This is marked in the chart below as a green color dotted line.
Daily chart – AVPT
AVPT – Symmetrical Triangle Pattern
#2 Solstice Advanced Materials Inc. (Nasdaq: SOLS)
Sector: Materials • Chemicals
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 SOLS is above the nearest resistance level of $66.00. This is marked in the chart below as a green color dotted line.
Daily chart – SOLS
SOLS – Falling Wedge Pattern Breakout
#3 Figma, Inc. (NYSE: FIG)
Sector: Technology • Software
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 FIG is above the breakout level of the consolidation area, at around $31.70. This is marked in the chart below as a green color dotted line.
Daily chart – FIG
FIG – Consolidation Area
#4 Pegasystems Inc. (Nasdaq: PEGA)
Sector: Technology • Software
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 PEGA is if the stock has a daily close above $37.00. This is marked in the chart below as a green color dotted line.
Daily chart – PEGA
PEGA – Downtrend Channel Breakout
#5 Autodesk, Inc. (Nasdaq: ADSK)
Sector: Technology • Software
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 ADSK is if the stock closes above the immediate resistance level of $272.00. This is marked in the chart below as a green color dotted line.
Daily chart – ADSK
ADSK – Symmetrical Triangle Pattern Breakout
#6 Strive, Inc. (Nasdaq: ASST)
Sector: Finance • Financial 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 ASST is above the nearest resistance level of $23.40. This is marked in the chart below as a green color dotted line.
Daily chart – ASST
ASST – Falling Wedge Pattern Breakout
#7 Green Plains, Inc. (Nasdaq: GPRE)
Sector: Energy • Oil, Gas & Consumable Fuels
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 GPRE is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $15.00. This is marked in the chart below as a green color dotted line.
Daily chart – GPRE
GPRE – Symmetrical Triangle Pattern
#8 The Kraft Heinz Company (Nasdaq: KHC)
Sector: Consumer Staples • Food Products
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 KHC is above the near-term resistance level of $25.90. This is marked in the chart below as a green color dotted line.
Daily chart – KHC
KHC – Flag Pattern Breakout
#9 Celsius Holdings, Inc. (Nasdaq: CELH)
Sector: Consumer Staples • Beverages
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 CELH is if the stock breaks out of the downtrend channel and closes above the price of $35.50. This is marked in the chart below as a green color dotted line.
Daily chart – CELH
CELH – Downtrend Channel
#10 SailPoint, Inc. (Nasdaq: SAIL)
Sector: Technology • Software
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 SAIL is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $20.50. This is marked in the chart below as a green color dotted line.
Daily chart – SAIL
SAIL – Symmetrical Triangle Pattern
Ten names, split down the middle two ways. Five are software; five aren’t. Five have already broken out; five are still coiling. And the two splits don’t line up — most of the software is still waiting, while the confirmed breakouts sit mostly in the non-software names.
The signal is the same in both halves: a clean daily close above the buy level listed alongside each ticker. For the names still inside their patterns, that close is the breakout. For the ones already through, it’s confirmation that buyers are defending it. Not the open. Not the intraday tap. The close.
We’ll watch the table this week and let the names sort themselves out.
Happy Trading!
Tara and Greg
