Last up is Alcatel Lucent (ALU), the $10.5 billion French communications firm that's become a popular trading vehicle in the last couple of years. That huge liquidity in shares of ALU means that it's more likely to be technically obedient -- and considering the bullish setup in shares, that's a very good thing for anyone who owns shares.
Alcatel Lucent is currently forming an inverse head and shoulders pattern, a trading setup that indicates exhaustion among sellers. The pattern is formed by two swing lows that bottom out around the same level (the shoulders), separated by a deeper low (the head). The buy signal comes on a move through the neckline, which is right at $4.60.
So far, this pattern isn't complete -- it hasn't formed a right shoulder yet. But ultimately, for the reasons I mentioned earlier, that doesn't have a big bearing on the trading implications of ALU. If shares can catch a bid above $4.60, I'd be a buyer -- with a tight stop in place, of course. This stock is still a volatile name.
To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.