S&P 500 Picks: Trading Opportunities For Next Week

A security pattern traces the distinct movements of prices, which helps traders make informed trading decisions. These patterns are identified by their vital geometrical elements and are formed by changing security prices. Let's look at some S&P 500 stock opportunities by analyzing these patterns.

Buy Signal for Marathon Petroleum (MPC) (Triangle Symmetrical Bottom)

The Symmetrical Triangle Bottom pattern forms when the price of a security fails to retest a high or a low and ultimately forms two narrowing trend lines. As the support and resistance levels consolidate, it forms a triangle. Symmetrical Triangles are characterized by the upper line sloping downward and lower line sloping upward.

The price movement inside the triangle should fill the shape with some uniformity, without leaving large blank areas. This pattern is commonly associated with directionless markets, since the contraction (narrowing) of the market range signals that neither bulls nor bears are in control.

However, there is a distinct possibility that market participants will either pour in or sell out, and the price can move up or down with big volumes (leading up to the breakout).

Trade Idea:

  • Buy near the Breakout (Entry) price – 64,29$.
  • Sell at the Target (Exit) price – 67,76$.

Buy Signals for Micron Technology (MU), Ford (F), Costco (COST), and Advanced Micro Devices (AMD)

Trade Idea:

  • Buy at the opening of the Stock Market on Monday if the opening price has gone up by no more than 0.5% of the closing price of Friday.
  • Sell after the price has risen by 2% from the closing price on Friday, or at the end of the trading week if the target is not reached.

Strong Buy Signal for Applied Materials (AMAT)

Trade Idea:

  • Buy AMAT at the current market price if it is within an appealing range.
  • Sell AMAT after receiving the "Sell" recommendation from analyses.

Strong Buy Signal for Eli Lilly & Co. (LLY)

Trade Idea:

  • Buy LLY at the current market price if it is within an appealing range.
  • Sell LLY after receiving the "Sell" recommendation from analyses.
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