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 | Pony AI Inc. ADR | NASDAQ: PONY | $20.70 | $21.60 | Symmetrical Triangle Pattern Breakout |
| 2 | NuScale Power Corporation | NYSE: SMR | $46.77 | $47.00 | Flag Pattern Breakout |
| 3 | Quantum Computing Inc. | NASDAQ: QUBT | $23.27 | $24.00 | Symmetrical Triangle Pattern Breakout |
| 4 | WeRide Inc. ADR | NASDAQ: WRD | $11.53 | $11.70 | Breakout From Consolidation Area |
| 5 | CoreWeave Inc. | NASDAQ: CRWV | $124.86 | $129.40 | Symmetrical Triangle Pattern |
| 6 | MP Materials Corporation | NYSE: MP | $73.22 | $76.60 | Flag Pattern Breakout |
| 7 | Archer Aviation Inc. | NYSE: ACHR | $9.86 | $10.20 | Symmetrical Triangle Pattern Breakout |
| 8 | Heritage Insurance Holdings Inc. | NYSE: HRTG | $28.40 | $29.10 | Breakout From Consolidation Area |
| 9 | Harmony Gold Mining Co Ltd ADR | NYSE: HMY | $16.88 | $17.00 | Symmetrical Triangle Pattern Breakout |
| 10 | Quantum Corp | NASDAQ: QMCO | $11.88 | $12.70 | Falling Wedge Pattern Breakout |
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 Pony AI Inc. ADR (NASDAQ: PONY)
Sector: Technology • Information Technology 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 PONY is if the stock closes above the immediate resistance level of $21.60. This is marked in the chart below as a green color dotted line.
Daily chart – PONY
PONY – Symmetrical Triangle Pattern Breakout
#2 NuScale Power Corporation (NYSE: SMR)
Sector: Industrials • Specialty Industrial Machinery
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 SMR is above the near-term resistance level of $47.00. This is marked in the chart below as a green color dotted line.
Daily chart – SMR
SMR – Flag Pattern Breakout
#3 Quantum Computing Inc. (NASDAQ: QUBT)
Sector: Technology • Computer Hardware
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 QUBT 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 – QUBT
QUBT – Symmetrical Triangle Pattern Breakout
#4 WeRide Inc. ADR (NASDAQ: WRD)
Sector: Technology • Software – Application
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 WRD is above the near-term resistance area, which translates to a price of around $11.70. This is marked in the chart below as a green color dotted line.
Daily chart – WRD
WRD – Breakout From Consolidation Area
#5 CoreWeave Inc. (NASDAQ: CRWV)
Sector: Technology • Software – Infrastructure
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 CRWV is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $129.40. This is marked in the chart below as a green color dotted line.
Daily chart – CRWV
CRWV – Symmetrical Triangle Pattern
#6 MP Materials Corporation (NYSE: MP)
Sector: Basic Materials • Other Industrial Metals & Mining
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 MP is above the near-term resistance level of $76.60. This is marked in the chart below as a green color dotted line.
Daily chart – MP
MP – Flag Pattern Breakout
#7 Archer Aviation Inc. (NYSE: ACHR)
Sector: Industrials • Aerospace & Defense
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 ACHR is if the stock closes above the immediate resistance level of $10.20. This is marked in the chart below as a green color dotted line.
Daily chart – ACHR
ACHR – Symmetrical Triangle Pattern Breakout
#8 Heritage Insurance Holdings Inc. (NYSE: HRTG)
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 HRTG is above the near-term resistance area, which translates to a price of around $29.10. This is marked in the chart below as a green color dotted line.
Daily chart – HRTG
HRTG – Breakout From Consolidation Area
#9 Harmony Gold Mining Co Ltd ADR (NYSE: HMY)
Sector: Basic Materials • Gold
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 HMY is if the stock closes above the immediate resistance level of $17.00. This is marked in the chart below as a green color dotted line.
Daily chart – HMY
HMY – Symmetrical Triangle Pattern Breakout
#10 Quantum Corp (NASDAQ: QMCO)
Sector: Technology • Computer Hardware
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 QMCO is above the nearest resistance level of $12.70. This is marked in the chart below as a green color dotted line.
Daily chart – QMCO
QMCO – Falling Wedge Pattern Breakout
Happy Trading!
Trades of The Day Research Team
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Source: Trades of the Day
