These Stocks Look Set to Soar

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	First Majestic Silver Corp.	NYSE: AG	$7.32	$7.50	Falling Wedge Pattern
2	DoorDash, Inc.	NYSE: DASH	$59.64	$63.90	Symmetrical Triangle Pattern
3	Roivant Sciences Ltd.	NASDAQ: ROIV	$8.70	$8.90	Flag Pattern Breakout
4	DRDGOLD Limited	NYSE: DRD	$8.35	$8.80	Symmetrical Triangle Pattern
5	Alamos Gold Inc.	NYSE: AGI	$11.32	$11.50	Flag Pattern Breakout
6	Franco-Nevada Corporation	NYSE: FNV	$143.50	$145.50	Symmetrical Triangle Pattern Breakout
7	Microsoft Corporation	NASDAQ: MSFT	$279.43	$280.80	Symmetrical Triangle Pattern Breakout
8	McEwen Mining Inc.	NYSE: MUX	$7.91	$8.20	Symmetrical Triangle Pattern Breakout
9	Riot Blockchain, Inc.	NASDAQ: RIOT	$8.10	$8.20	Symmetrical Triangle Pattern Breakout
10	Catalyst Pharmaceuticals, Inc.	NASDAQ: CPRX	$15.92	$16.10	Symmetrical Triangle 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 First Majestic Silver Corp. (NYSE: AG)

Sector: Basic Materials | Silver

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 AG is if the stock breaks out of the falling wedge pattern, at a price of around $7.50. This is marked in the chart below as a green color dotted line.

Daily chart – AG

#2 DoorDash, Inc. (NYSE: DASH)

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 DASH is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $63.90. This is marked in the chart below as a green color dotted line.

Daily chart – DASH

#3 Roivant Sciences Ltd. (NASDAQ: ROIV)

Sector: Healthcare | Biotechnology

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 ROIV is above the near-term resistance level of $8.90. This is marked in the chart below as a green color dotted line.

Daily chart – ROIV

#4 DRDGOLD Limited (NYSE: DRD)

Sector: Basic Materials | Gold

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 DRD is if the stock has a daily close above the breakout level of the symmetrical triangle pattern, at around $8.80. This is marked in the chart below as a green color dotted line.

Daily chart – DRD

#5 Alamos Gold Inc. (NYSE: AGI)

Sector: Basic Materials | Gold

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 AGI is above the near-term resistance level of $11.50. This is marked in the chart below as a green color dotted line.

Daily chart – AGI

#6 Franco-Nevada Corporation (NYSE: FNV)

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 FNV is if the stock closes above the immediate resistance level of $145.50. This is marked in the chart below as a green color dotted line.

Daily chart – FNV

#7 Microsoft Corporation (NASDAQ: MSFT)

Sector: Technology | Software – Infrastructure

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 MSFT is if the stock closes above the immediate resistance level of $280.80. This is marked in the chart below as a green color dotted line.

Daily chart – MSFT

#8 McEwen Mining Inc. (NYSE: MUX)

Sector: Basic Materials | Other Precious Metals & Mining

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 MUX is if the stock closes above the immediate resistance level of $8.20. This is marked in the chart below as a green color dotted line.

Daily chart – MUX

#9 Riot Blockchain, Inc. (NASDAQ: RIOT)

Sector: Technology | Software – Application

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 RIOT is if the stock closes above the immediate resistance level of $8.20. This is marked in the chart below as a green color dotted line.

Daily chart – RIOT

#10 Catalyst Pharmaceuticals, Inc. (NASDAQ: CPRX)

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 CPRX is if the stock closes above the immediate resistance level of $16.10. This is marked in the chart below as a green color dotted line.

Daily chart – CPRX

Happy Trading!

Trades of The Day Research Team

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Source: Trades of the Day