TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

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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 small-cap stock opportunities that may be revealed by analyzing these patterns.

Buy Signal for Quanterix Corporation (QTRX) (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 price is expected to move up or down past the pattern depending on which line is broken first.

Trade idea:

• Buy near the breakout (entry) price – $10.53.
• Sell at the target (exit) price – $12.43.

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 EVI Industries, Inc. (EVI), Sonida Senior Living, Inc. (SNDA), & C&F Financial Corporation (CFFI)

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 Canterbury Park Holding Corporation (CPHC)

Trade idea:

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

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