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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 Russell 2000 stock opportunities that may be revealed by analyzing these patterns.

Buy Signal for Nurix Therapeutics, Inc. (NRIX) (Wedge Falling)

The wedge falling pattern forms when the price of a security appears to be spiraling downward, and two down-sloping lines are created with the price hitting lower lows (as shown by points 1, 3, and 5) and lower highs (as shown by points 2 and 4). The two pattern lines intersect to form a narrow triangle. Unlike descending triangle patterns, however, both lines need to have a distinct downward slope, with the top line having a steeper decline.

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 – $16.39.
• Sell at the target (exit) price – $17.20.

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 Forma Therapeutics Holdings, Inc. (FMTX), Super Micro Computer, Inc. (SMCI), & FIGS, Inc. (FIGS)

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 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 PJT Partners Inc. (PJT)

Trade idea:

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

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