Top Undervalued Stocks: Trading Opportunities For Next Week

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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. Let's look at some undervalued stock opportunities by analyzing these patterns.

Buy Signal for Westlake Chemical Partners (WLKP(Broadening Wedge Ascending)

The broadening wedge ascending pattern forms when the price of a security progressively makes higher highs (1, 3) and higher lows (2, 4), following two widening trend lines. This pattern may form when investors spread their buying over a period of time.

The theory goes that after the initial buying occurs, other market participants react to the rising price and jump on the bandwagon to participate. Then value investors begin to sell, believing the price has risen too much, which spurs the original large investor to resume buying again.

Trade Idea:

  • Buy near the breakout (entry) price – $27.04.
  • Sell at the target (exit) price – $28.01.

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 Olympic Steel (ZEUS), Genco Shipping & Trading (GNK), Paramount Global (PARA), and Daqo New Energy Corp. (DQ)

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 Allstate Corporation (ALL)

Trade Idea:

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