According to an X post published late on Tuesday, October 13, the popular trading expert and on-chain analyst, Ali Martinez, believes he has identified three stocks likely to enjoy a bullish breakout in the short term.
To begin with, Apple (NASDAQ: AAPL) shares appear to have been consolidating within an ascending triangle since late July – when they were trading at approximately $310 – and the latest close at $341.27.
Martinez highlighted that AAPL stock tested a critical resistance at $344.54 intraday on Tuesday but failed. However, the trading expert explained that should the equity succeed in rising above the important price, it could soar to a new high at $372.
Should the breakout be confirmed, a $1,000 investment in the blue-chip technology giant at its Wednesday pre-market price of $343.44 could rise 8.32% to $1,083.20.
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Meanwhile, the second stock Ali Martinez identified – Ondas (NASDAQ: ONDS) – appears to be in the opposite situation to Apple’s. According to the trading expert, ONDS has fallen to the bottom of its channel and is testing support at $8.50.
Should Ondas shares enjoy a rebound from the level, the analyst explained he expects a rally to between $8 and $10. With ONDS stock changing hands at $5.53 in the Wednesday pre-market, a $1,000 investment could turn into $1,531 if the equity hits the top of the range.
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Lastly, Nvidia (NASDAQ: NVDA) is the third company that Ali Martinez believes is well-positioned for a breakout.
The blue-chip technology giant hit new highs in early October and briefly strove to claim a new record with a $6 trillion valuation. Still, the high price was ultimately rejected, and NVDA shares retraced 4.48% to $228.52 by the Tuesday close.
According to Martinez, however, the retracement ultimately led to a popular technical analysis (TA) indicator, TD Sequential, which identifies potential reversals by counting consecutive price bars, flashing a ‘Buy’ signal on the four-hour chart.
The trading expert explained that this could indicate a short-term rebound is imminent, but refrained from providing a target range.
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