Image Source: Unsplash

A security pattern traces the distinct movements of security prices that, once recognized, help traders to make informed trading decisions. These patterns are identified by their vital geometrical elements, which are formed by changing security prices. Here is a closer look at some materials stock opportunities that may be revealed by analyzing these patterns.

Buy Signal for Summit Materials, Inc. (SUM) (Triangle Symmetrical Top)

The triangle symmetrical top pattern forms when the price of a security fails to retest a high or low, and it ultimately forms two narrowing trend lines. The price is expected to move up or down past the triangle depending on which line is broken first. The price movement inside the triangle should fill the shape with some uniformity without leaving large blank areas.

Trade ideas:

• Buy near the breakout (entry) price – $30.57.
• Sell at the target (exit) price – $32.64.

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 ArcelorMittal S.A. (MT), Rio Tinto Group (RIO), & Vulcan Materials Company (VMC)

Trade ideas:

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

Buy Signal for Materion Corporation (MTRN)

Trade ideas:

• Buy MTRN at the current market price if seen as appealing.
• Sell MTRN after receiving the "sell" recommendation from trusted analyses.

More By This Author: