Technical Setups: News Corp., RBS

BALTIMORE (Stockpickr) -- Volatility is on a serious upswing in May. Yesterday, the S&P 500 closed 4.4% higher, the biggest single-day gain stocks have seen in the last 14 months. The sizable gain has been attributed to quelled fears over the eurozone debt crisis following the announcement of a European bailout package that could apply to any country in the Eurozone that faces fiscal difficulties.

But today things aren't quite so bullish, and futures are down significantly. The reason: Now investors have decided that maybe the bailout package across the pond isn't going to be big enough.

While the volatility spike is bringing back some bad memories for investors who use fundamentals alone, it's providing some big opportunities for technical traders.

Technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's chart patterns and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.



Here's a look at this week's technical plays.