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 moves and trends. Technical analysis will help guide you to discovering the chart patterns that offer the highest probability of success. By consulting the charts and using technical analysis, plus combining those methods with fundamental analysis, you will truly have an edge over a majority of market participants. Right now, the S&P 500 has made a significant technical move by breaking above its 200-day moving average of 1114.83. A move above the next area of major resistance at around 1131.23 could set up a run back toward 1173. Market players should expect new money to flow into the markets as long as the S&P can stay above both its 50-day and 200-day moving averages. Many large institutional investors will not deploy money into the markets unless the S&P is trading above both of these key levels. Recently, the tech-heavy Nasdaq has also made a significant technical move by trading above its 200-day moving average of 2264.71. Market players should watch for this key index to take out the next area of significant resistance at around 2307.60. A move above that level should set up a run back towards 2341, which is the next area of overhead resistance. Here's a look at some compelling charts that are piquing the interest of the Stockpickr community.
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Stockpickr member kjp712 submitted China Precision Steel ( CPSL), a steel processing company principally engaged in the manufacture and sale of high precision cold-rolled steel products and in the provision of heat treatment and cutting of medium and high carbon hot-rolled steel strips.
The final chart comes from Stockpickr member xxfranky1769xx, who submitted People's United Financial ( PBCT - Get Report), a savings-and-loan holding company that specializes in commercial banking, retail and small business banking, and wealth management services.
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