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

Buy Signal for Southern Copper Corporation (SCCO) (Flag)

The rising flag (or bullish flag) pattern looks like a flag with a mast. It forms when rising prices experience a consolidation period, and the price moves within a narrow range defined by the parallel lines through points (2-4) and (3-5). After the consolidation, the previous trend resumes.

This type of formation happens when the price of a security is expected to move in a rising trend line, but some volatility along the way creates a consolidation period.

Trade idea:

• Buy near the breakout (entry) price – $49.12.
• Sell at the target (exit) price – $52.43.

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 Tecnoglass Inc. (TGLS), Mesabi Trust (MSB), & Mueller Industries, Inc. (MLI)

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 UFP Industries, Inc. (UFPI)

Trade idea:

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

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