BALTIMORE (Stockpickr) -- While the rally of 2010 has been steaming along for long enough to send contrarian alarms ringing, it might not be time to hunker down for a big correction just yet -- across the board, the short term technicals are pointing toward a bullish (or at least neutral) outlook to end the final week in March. But a few stocks are setting up for a more compelling trade, so as usual, let's take a look at this week's technical set-ups.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. Let's face it, though -- sometimes investors don't know where to start. That's why, every week, Stockpickr takes a look at stocks that could be staging a technical move soon and compiles a portfolio of promising Technical Setups. Here's a look at this week's potential trades.
Shares of Advance Auto Parts ( AAP) have done a fairly good job of pacing the broad market year to date, despite a fair number of hiccups that threatened to derail shareholders' hopes for a decent return in 2010. The biggest of those was a post-earnings breakdown that ultimately proved to be inconsequential for shareholders of the nearly $4 billion company. Now that those earnings are out of the way, the technicals are pointing toward higher levels for Advance's share price.
While TD Ameritrade's ( AMTD) start to the new year was anything but auspicious, a near-term bottom during the first week of February has perked up trader interest for the long side. That's especially true now that this brokerage firm has made it past a key resistance level at the 200-day moving average.
Like many regulated utility stocks, Washington D.C.-based natural gas utility WGL Holdings ( JNPR) has long been a popular choice for income investors thanks to its 4.3% yield -- a dividend that's been paid out for the last 158 straight years. This week, though, we're taking a look at the short-term upside trading potential of this traditionally long-term investment choice.
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