BALTIMORE (Stockpickr) -- Just because all eyes are on a handful of high-volume stocks doesn't mean that their volatile short-term movements are going to make any sense. Even when the news isn't there to trigger a stock to jump, volatile issues can move wildly on a daily basis. Turning to technical analysis cues can give us a glimpse of why some of the biggest names on Wall Street are moving.
And if there's a play to be made, we'll take it.
Technical analysis uses a stock's price movements to determine where shares are headed in the future. Technical charts are used every day by proprietary trading floors, the street's biggest financial firms and individual investors to get an edge on the market. And according to some sources, skilled technical traders can bank gains as much as 90% of the time.
at how some of the biggest names on Wall Street are trading technically.
While Detroit has had a rough few years,
has singled itself out as the best of the automaking breed. Investors have taken notice in turn, pushing the stock up to a 52-week high following a 314.4% rally in 2009.
And this stock looks prepped to take off higher in the coming week. For the last month, Ford has been forming a bullish ascending triangle as the stock applied upward pressure on the red resistance line in the chart above. The trade trigger for Ford would have been a breakout above the resistance line, followed by a close above it, which happened in yesterday's trading session. That means Ford shares are sending a prime buy signal right now.
With Ford at a 52-week high right now and with no previous resistance level clearly in sight, there isn't a near-term price target for this issue. Prepare your exit when shares start to lose momentum.
has been in the news recently following the latest wave of antitrust rumblings after the FTC's review of the company's legal head-butting with
But the company's troubles might not be ending there. The stock's chart implies that there could be a breakout in the coming trading sessions.
Over the last two months, Intel seemed to be forming what's known as a pennant -- a continuation pattern of lower highs and higher lows that would have suggested higher prices in 2010. But with share prices pulled back to the lower red support line, and a slew of negative news items helping to move the stock, the potential for a downward breakout is a real one.
A pullback to the $19 level could mean a sustained drop next week.
Bank of America
may have just repaid $45 billion in TARP funds and finally elected Brian Moynihan as CEO, but a minor resistance level could find the company's stock bumping its head next week.
Bank of America stock bounced off the blue price level several times between August and October when the line was a support level, and now, with share prices sliding below that key level in the middle of last week and the 50-day moving average acting as an additional resistance level, Bank of America has some serious roadblocks in the road to higher ground.
Don't consider buying unless this issue managed to break above those levels.
For the rest of this week's high-volume technical trades, including
, check out the
-- Written by Jonas Elmerraji in Baltimore.
At the time of publication, Elmerraji had no positions in stocks mentioned.â¿¨â¿¨
Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on MSNBC.com.