3 Big Stocks on Traders' Radars: Must-See Charts

These stocks are seeing big trading volume today. Here's a technical look at what to do with them now.
By Jonas Elmerraji ,

Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.

From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.

Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.

While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis.

Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market.

Tesla Motors

  • Nearest Resistance: $265
  • Nearest Support: $210
  • Catalyst: Q3 Earnings

Electric car maker Tesla Motors (TSLA) - Get Report  is rallying more than 10% as I write this afternoon, up following third-quarter earnings. Tesla reported a loss of 58 cents per share for the quarter, delivering results that came in slightly worst than analyst expectations. Still, investors are reacting positively to the earnings news and to the announcement of ex-Googler Jason Wheeler as Tesla's new CFO.

Tesla's bounce clears the way for a possible re-test of this stocks most recent swing highs at $265, but risk-averse investors should keep a tight protective stop in place.

CBS

  • Nearest Resistance: $52
  • Nearest Support: $44
  • Catalyst: Q3 Earnings

Entertainment company CBS (CBS) - Get Report  is up slightly this afternoon, seeing big volume on the firm's third-quarter earnings call. CBS earned 88 cents in profit for the third quarter, coming in above the 80 cent earnings that Wall Street was hoping for.

Technically speaking, though, this stock has actually been in "breakout mode" since shares pushed through $44 back at the end of October. While CBS is likely to bleed off some overbought momentum in the near-term, investors should look out for more upside in the final stretch of 2015 now that the downtrend in shares is broken.

DSW

  • Nearest Resistance: $24
  • Nearest Support: N/A
  • Catalyst: Forecast Cuts, New CEO

Footwear retailer DSW (DSW) - Get Report  is down more than 10% this afternoon, swatted lower following lowered forecasts for the coming quarter, which it's set to release on November 24. DSW expects this year's earnings to come in between $1.40 and $1.50 a share, down from estimates as high as $1.90 made earlier. The firm also announced that it will be replacing its CEO; Chief Innovation Officer Roger Rawlins takes the top job effective Jan. 1.

It doesn't take an expert technical analyst to figure out what's been going on in shares of this retail stock. Shares have been in a parabolic downtrend for the better part of the last year, and they're feeling out some new lows this afternoon. Buyers should stay away until DSW can catch a bid again.

Disclosure: This article is commentary by an independent contributor. At the time of publication, the author was long TSLA.

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