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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 Nasdaq 100 stock opportunities that may be revealed by analyzing these patterns.

Buy Signal for Comcast Corporation (CMCSA) (Broadening Top)

The broadening top pattern forms when the price of a security progressively makes higher highs (as shown by points 1 and 3) and lower lows (as shown by points 2 and 4), following two widening trend lines. The price is expected to move up or down past the pattern depending on which line is broken first.

This type of formation happens when volatility is high or increasing, and when a security’s price is moving with high volatility but with little or no direction. It can potentially indicate growing investor nervousness and indecisiveness.

Trade ideas:

• Buy near the breakout (entry) price – $36.98.
• Sell at the target (exit) price – $40.24.

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 Moderna, Inc. (MRNA), KLA Corporation (KLAC), & Broadcom Inc. (AVGO)

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 PepsiCo, Inc. (PEP)

Trade ideas:

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

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