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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Breakout Trades to Buy This Week

Lincoln National

Lincoln National (LNC) is a financial stock that's forming a channel of its own... But with a twist.

That's because the $12 billion wealth management firm is moving sideways in a range-bound trade called a rectangle. The setup gets its name because price action is essentially "boxed-in" by resistance above shares at $45, and support to the downside at $42. Instead of buying within the channel, rectangles are breakout trades - you want to trade this name when it breaks outside of the box.

That means that a move through the $45 level is a buy signal, and a move through support at $42 is an indicator that it's time to sell (or short) LNC. Right now, there's some extra bias to the upside - typically, rectangles are continuation patterns, and since Lincoln's preceding price action was up, it's likely next move is up as well. Still, it doesn't become a high probability trade until the breakout happens, so wait to get your direction from the market.

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