By Roberto PedoneWINDERMERE, Fla. ( Stockpickr) -- Technical analysis is a great tool that investors and traders can use to try to even the playing field on Wall Street. Instead of blindly throwing money at a stock, market players can consult the charts and try to determine things such as prevailing trends, where support and resistance are and what levels on a stock mark a good entry or exit point. They can also analyze trading volume to see if the big money is moving into a stock or moving out. All investors hope to end up on the right side of the trend, and using technical analysis to stalk the charts like a forensic scientist can help them remove emotional bias and make informed decisions. For instance, noticing that a stock is trending down might help an investor avoid an investment based on his or her love of the company's product. By no means should we ignore the fundementals, but at the end of the day, the objective is to make money. Technical anlaysis can help us make money on the long or short side by discovering the best chart patterns that give us the highest probability of success. Here's a look at some compelling charts that are piquing the interest of the Stockpickr community. If you're interested in having a chart analyzed for a future article, please visit this forum and post your tickers.
Stockpickr user Michael Morse submitted Greece-based telecommunications company Hellenic Telecom ( OTE), a stock that has been sold off heavily due to the Greek debt crisis. What's intersting here is that Hellenic Telecom was actually trending lower before the Greek crisis became mainstream news.
Another submission from Michael Morse was Cooper Tire & Rubber ( CTB), a manufacturer of replacement tires. The chart for Cooper Tire looks great. Take a look, and you will see a clearly defined uptrend channel that shows a pattern of higher highs and lower lows.
Stockpickr user kjp712 submitted U.S.-based Wayside Technology Group ( WSTG), a marketer of software targeting software development and information technology professionals within enterprise organizations.
The last stock I will analyze is another submission from shawnmks: PowerShares DB Agriculture Fund ( DBA). The DBA is an ETF designed to benefit off the rise in futures contracts on some of the most liquid and widely traded agriculture commodities. Looking at the chart, you can see that the DBA formed a double top at around $42 a share back in 2008. Since that top, the stock did nothing but trend lower before finding a temporary bottom and support around the low-$20s.
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