BALTIMORE (Stockpickr) -- The market made a lower open on Thursday, a sign that investors are still squeamish about the headline-driven fundamentals that are ruling the market right now. This afternoon, President Obama will address Wall Street, asking for financial firms to help Washington in the path to reform. The President's message comes at a crucial time for Wall Street. With allegations swirling about multiple firms' involvement in less-than-ethical activities, the public is adamant about putting financial execs to task on the issue.But it's also a strategically smart time to talk about the dirty work of reform -- after all, with upbeat earnings in play all week, it's unlikely that the politics will impact the market. Instead, to find the stocks most likely to swing in this environment, it's time once again to turn to the technicals. 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. Every Thursday, Stockpickr analyzes the technicals for some of Wall Street's highest-volume stocks and takes a look at how to trade them. Here's this week's look at how some of the biggest names on Wall Street are trading technically.
Members-only warehouse retailer Costco ( COST) has been having an interesting year. The company, which operates 560 stores worldwide for 55 million members, has already seen shares jump 30% in the trailing 12 months as financial conditions for retailers have improved precipitously. Now, this stock could be facing additional buying pressure thanks to bullish technicals.
There's a markedly different tone in the chart of independent oil and gas producer Talisman Energy ( TLM). Talisman has been in transition since last year, when management announced that the company would be shifting its focus on exploration and production to higher-risk energy properties. In the short term, the biggest risk for shareholders could be the pattern that's forming in the company's stock chart.
With an increased interest in financial stocks this week, it's no surprise that German banking giant Deutsche Bank ( DB - Get Report) is seeing an uptick in volume despite a big slide on news of the SEC's Goldman Sachs ( GS - Get Report) suit last Friday. But things could be getting better for shareholders -- after they get worse, of course.
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