BALTIMORE ( Stockpickr) -- This week could prove to be an interesting one for market participants as the S&P 500 index struggles to push up against 52-week resistance at 1150. If stocks are able to make a sustained move above that level, the implications could be huge for long-side investors, because the potential for another sizable rally in 2010 will be in full force. But instead of being a slave to the broad market indices, it's time to look at promising technical setups.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. But all too often, investors don't know where to start. So every week, Stockpickr takes a look at stocks that could be staging a technical move soon and compiles a portfolio of promising Technical Setups. These plays are among the best-inclined to make a tradable breakout this week. Here's a look at this week's stocks.
Fast-food giant Yum! Brands ( YUM) is having a strong month, with shares up more than 12% following an early March analyst upgrade. But that move is more than just impressive; that bullish run pushed shares of Yum! past a key resistance level at $36.10, opening them up to even bigger upside movement for the rest of 2010.
Owens Corning ( OC) is known for its insulation, but that doesn't mean that shares are insulated from downside risk right now. All told, Owens Corning has been on one bumpy ride over the course of the last couple of years; anxiety over lower new-home volume scared away investors in late 2008, but impressive performance catalyzed a 370% comeback from the company's march lows.
$2.8 billion truck manufacturer Navistar ( NAV) could be headed higher this week thanks to the intersection of three key support levels right under $40 per share.
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