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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 S&P 500 stock opportunities that may be revealed by analyzing these patterns.

Buy Signal for The Kraft Heinz Company (KHC) (Broadening Wedge Ascending)

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

The theory goes that after 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 ideas:

• Buy near the breakout (entry) price – $40.96.
• Sell at the target (exit) price – $42.50.

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 Duke Energy Corporation (DUK), The Boeing Company (BA), & Moderna, Inc. (MRNA)

Trade ideas:

• Buy at the opening of the stock market on Tuesday 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 Leidos Holdings, Inc. (LDOS)

Trade ideas:

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

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