Must-See Charts: Visa, Pfizer, China Mobile

Here's a look at how some of the biggest names on Wall Street are trading technically.
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BALTIMORE (Stockpickr) -- President Obama's stance against continuing tax cuts for Americans who make more than $250,000 per year is the talk of the headlines today -- but other headlines will likely have larger effects on the markets for traders.

Bullish forces continue to be in action this week thanks to increased M&A action, calmed sovereign debt worries, and an exit from "safe" assets such as treasuries. While

I've previously discussed the market's current M&A trends

at length, the transactions haven't slowed down into the first full week of September. All of that added capital is having a palpable effect on the market, which has already risen 4.75% since last Monday.

And while

European debt woes

have been out of sight and out of mind for most retail investors, they've continued to weigh on traders concerned with the stability of any rally attempts. Some of those fears were extinguished yesterday following a "less bad" auction of Portuguese sovereign bonds. We'll want to see fewer auctions in the coming months as the PIIGS countries work at austerity measures. Otherwise, we could be looking at a major roadblock to gains.

But regardless of how the market moves, technical traders will manage to eke out profits.

Technical analysis

uses a stock's price movements to determine where shares are headed in the future. Technical charts are used daily 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.

Wondering how some of Wall Street's biggest names are shaping up right now? Let's

take a technical look

.

With more than 70% of China's wireless market, behemoth telecom stock

China Mobile

(CHL) - Get Report

is a major player in a high growth market. At last count, the company's subscriber base stood at 497 million -- and the growth hasn't slowed. In fact, as China Mobile pushes toward higher-margin smartphone users (like U.S. carriers have), this company could see bottom-line growth outpace subscriber increases. But those tailwinds won't save shares from falling in the short-term.

Shares of China Mobile fell hard earlier this week, bouncing lower following a breakdown below an uptrend line in late August. Now, with shares stumbling below the 50-day moving average in yesterday's trading, this stock is likely to see further downside in the near-term.

With few downside barriers between current price levels and the 200-day moving average at around $48, I'd expect to see shares move in on that lower level soon. If you want to take part in this downside trade, place a protective stop above the 50-day at around $50.60.

>>>Also see: 4 China Solar Stocks to Watch

There's a very different outlook forming in shares of drug giant

Pfizer

(PFE) - Get Report

right now. Shares of the $133 billion company are already up nearly 14% in the last quarter alone, and the company's current 4.35% yield should attract income investors to the table. But traders would do well to take notice too -- an ascending triangle breakout could be in store for shareholders right now.

Pfizer has already seen a major breakout this summer -- an inverse head-and-shoulders pattern that was spurred on by strong earnings data -- but a second one ahead of October could be in the cards. Shares are facing resistance at the 200-day moving average and look to potentially break through it thanks to a bullish ascending triangle pattern.

Wait for shares to cross above the upper resistance level (around $16.60) before going long.

>>>Also see: 30 Stocks That Matter Most to Hedge Funds

Sometimes, the most important part of trading is knowing when to hold 'em, which is the exact situation forming in shares of

Visa

(V) - Get Report

right now. While Visa is an attractive stock from a business perspective -- and is frequently present on our weekly

Rocket Stocks list

-- the payment network just doesn't present an attractive trade at current levels.

Shares of Visa have been trading sideways for the last several months, but the stock's volatility has been diminishing. That's a good thing for fundamental investors who want to avoid inexplicable price swings, but a less-attractive phenomenon for traders who are hoping to maximize the high-percentage moves they can make in a stock. Now, with shares of Visa trapped between support at around $69.50 and resistance at the 50-day moving average, shares don't really have much room to move.

I'd suggest abstaining from trading shares of this popular play until a definitive direction works itself out.

Who Owns Visa? Bruce Kovner Morgan Stanley

To see this week's trades in action, check out the

High Volume Technicals

portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

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At the time of publication, author had no positions in stocks mentioned.

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.