By Roberto Pedone WINDERMERE, 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 the market is on the verge of a major move, you'll be prepared to participate in that move, whether it's up or down. Market players who use technical analysis are watching the S&P 500 very closely right now because the major average is trading right around its 200-day moving average of 1114.12. If the S&P 500 can manage to trade above the 200-day and then get above some near-term resistance at around 1131.23, it could then set up to test 1173.57. However, a failure to trade above the 200-day moving average could set up a very sharp move lower. Here's a look at some compelling charts that are piquing the interest of the Stockpickr community.
Stockpickr member shawnmks submitted Sturm Ruger ( RGR), a company principally engaged in the design, manufacture and sale of firearms to domestic customers. Recently, the stock was able to find some support at around $13.35 a share, and now shares are trading back above the 50-day moving average. It's worth noting that Sturm Ruger has recently been making some higher lows, which shows that investors are snapping up the shares on any pullback.
Stockpickr member empiremaker submitted Visa ( V), which operates the retail electronic network and manages a global payments brand. This stock has been trading in pretty much a sideways pattern for the past couple of months, between $70 on the low end and $83 on the high end. The stock has found solid support three times at the $70 level, so a break below that price would be very concerning if you're a bull on this name.
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The next chart comes from Stockpickr member kjp712, who submitted ModusLink Global Solutions ( MLNK). This company is engaged in worldwide supply chain business process management serving technology-based clients in the computing, software, consumer electronics, and storage and communications markets.
There has been some some interest in Netflix ( NFLX) among the Stockpickr community, so I decided to throw this chart in for a bonus. Netflix is a subscription service streaming movies and television episodes over the Internet and sending digital versatile discs (DVDs) by mail to more than 12 million subscribers. Recently, the stock was hammered following its earnings report, which showed a 7.5% decline in average revenue per subscriber.
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