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 utilities stock opportunities that may be revealed by analyzing these patterns.

Buy Signal for DTE Energy Company (DTE) (The Three Rising Valleys)

The three rising valleys pattern forms when three minor lows (as seen by points 1, 3, and 5) are arranged along an upward sloping trend line. It often appears at the end of a declining trend – an indication that buyers are overtaking sellers, which ultimately pushes the price higher. This type of formation happens when investors shift into buying mode following a consolidation period.

Trade idea:

• Buy near the breakout (entry) price – $115.44.
• Sell at the target (exit) price – $125.01.

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 Central Puerto S.A. (CEPU), ONE Gas, Inc. (OGS), & The York Water Company (YORW)

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 Entergy Corporation (ETR)

Trade idea:

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

More By This Author: