By Roberto PedoneWINDERMERE, Fla ( Stockpickr) -- Stock markets around the world right now are treacherous, to say the least. Volatility is spiking to extremes on an almost daily basis, and the major averages are swinging 1% or 2% like it's nothing. Even the best fundamental investors are struggling to figure this market out. So how can you get an edge on the markets in the midst of this wild action? One possibility is to use technical analysis, a method of evaluating securities by relying on the assumption that market data, such as charts of price and volume, can help to predict future market trends. Technical analysis is in contrast to fundamental analysis, which looks to determine the intrinsic value of a security before buying or selling. By no means should investors ignore fundamental analysis, but one things fundamental analysis doesn't consider is the psychological influences of traders who are participating in a stock or market at any given time. This is where technical analysis comes in. By looking at the charts, investors can get a snapshot into the mind of the markets. We can begin to find support and resistance, or where buyers or sellers show up in large numbers to defend a price point. Technical analysis can help give us that edge by discovering the chart patterns that give us the highest probability of success. With that in mind, 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, visit this forum and post your tickers.
Stockpickr user csyung submitted BlackBerry maker Research In Motion ( RIMM), which he is considering shorting with a target of $54 a share. There are a number of interesting things showing up on the chart for RIM. First, you have a relative strength index, or RSI, indicator that has spiked below 30 for the second time since last November, when the stock sold off down to $54. The RSI is a technical momentum indicator that compares magnitude of recent gains with recent losses in an attempt to determine overbought and oversold conditions of the underlying security.
Stockpickr user drummerboy submitted diversified financial services company Fifth Third Bancorp ( FITB - Get Report). Looking at the chart, you can see that shares of Fifth Third are displaying a number of bearish indictors that should be capturing the attention of bulls.
Stockpickr user kjp712 submitted independent energy company Gran Tierra Energy ( GTE - Get Report), which is engaged in oil and gas exploration, development and production. The chart for GTE shows a stock trading right around some previous support at $4.58 a share. In fact, just a few days ago, GTE hit $4.57, just one penny away from the previous support level, and the stock stop falling and even rallied a little.
Stockpickr user Peter_near_Matanzas_Inlet submitted Netflix ( NFLX - Get Report), the subscription service company that streams movies and television episodes over the Internet and sends customers DVDs by mail. The chart for Netflix looks very bullish, to say the least. You can see that Netflix hasn't even lost the 50-day moving average, and the stock is still well within its uptrend channel that started back in February when Netflix broke out.