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 biotech stock opportunities by analyzing these patterns.

Buy Signal for AbCellera Biologics (ABCL) (Broadening Bottom)

A Broadening Bottom can be characterized as a bullish reversal pattern. It consists of two divergent lines that form a triangle. The movements between the two triangle sides increase as the pattern continues. Each side must be touched at least twice to be validated.

The Broadening Bottom pattern is formed when the price of a security progressively makes higher highs (2, 4) and lower lows (1, 3, 5) following two widening trend lines. The price is expected to move up or down past the pattern depending on which line is broken first. What distinguishes a Broadening Bottom from a Broadening Top is that the price of the security is declining prior to entering the pattern formation.

Trade Idea:

• Buy near the Breakout (Entry) price – 15,12$.
• Sell at the Target (Exit) price – 17,08$.

Trend trading is a strategy based on the technical analysis of changing market prices. The trend trader enters into a long position when a stock is trending upward and uses the short position when a stock is trending downward.

Buy Signals for Novavax (NVAX), Codexis (CDXS), & ACADIA Pharmaceuticals (ACAD)

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 Vertex Pharmaceuticals (VRTX)

Trade Idea:

• Buy VRTX at the recent market price.
• Sell VRTX after receiving the "Sell" recommendation/analysis.