First up is Telecom Italia ( TI), one of the biggest mobile and fixed line operators in Italy, Brazil, and Argentina. While the firm has gotten beaten down in the last 12 months, falling close to 20% as the Italian economy came under siege, things are definitely starting to look up for shareholders. Right now, the pattern to watch is a double bottom in shares of TI. Telecom Italia formed the second bottom in its double bottom back in early February, setting strong support at $10 -- that's a key psychological level. Those two bottoms tell us that there's a major glut of demand at $10, where buyers suddenly become more eager to pick up a bargain than sellers are to unload shares. The fact that two bottoms hit at precisely the same level shows us that $10 is a price where there's a consistent pocket of demand, not just a short-term one. >>5 Stocks Setting Up to Break Out The breakout level in TI is the peak at $13.50 that separates the two bottoms. When shares push up through that peak, we've got a signal that buyers are in control of this telco. Until that happens, your best bet is to let buyers and sellers slug it out on their own.