By Roberto PedoneWINDERMERE, Fla. ( Stockpickr) -- Technical analysis can be a great asset to investors who want to determine what the trend of the market or a stock is before they throw down hard-earned money. Consulting the charts can help you spot important market action before it happens, preparing you to follow the trend and make the right trade. Technical analysis is 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 will help guide you to discovering the chart patterns that offer the highest probability of success. For instance, if we're going into a bear market, technical analysis can help you avoid stocks until you see some signs of stabilization or consolidation. And combining technical analysis with fundamental analysis will give you an edge over other market participants. Currently, a number of market technicians want to see the Dow Jones Industrial Average break above 10,600 in order to reverse the current market downtrend that has many investors worried that a larger bear market is looming. A move over 10,600 would indicate that the uptrend is back on track. Here's a look at some compelling charts that are piquing the interest of the Stockpickr community.
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Stockpickr member franco1717 submitted Cummins ( CMI), a company engaged in the designing, manufacturing, distributing and servicing of diesel and natural gas engines, electric power generation systems and engine-related component products.
|Who Owns Cummins?|
Stockpickr member Michael Morse submitted eHealth ( EHTH), an online source of health insurance for individuals, families and small businesses. If you're looking for a chart that screams AVOID, then you have definitely found it with eHealth. There is absolutely nothing to like about this stock -- not one single thing from a technical standpoint.
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Stockpickr member xxfranky1769xx submitted Dr Pepper Snapple Group ( DPS), which is an integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the U.S., Canada and Mexico.
|Who Owns Dr Pepper?|
The final chart comes from Stockpickr member kjp712, who submitted Fortress Investment Group ( FIG), a global alternative asset manager that raises, invests and manages private equity funds, liquid hedge funds and hybrid funds. Shares of Fortress have recently made a V-shaped bottom and soared from $2.70 to around $4 a share in just a couple of weeks.
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