The below chart from finviz.com is a great example of how charts can help fundamental investors. NII Holding (NIHD) is a leading wireless provider in Latin America building 3G networks in Brazil, Chile, Mexico, and Peru.
The stock has been in a major downtrend since back in July. The original drop was in connection with the overall market drop, but the failure to rally the last few months was very frustrating to investors. All of a sudden though, NIHD broke out of the duldrums recently. Not surprising to technical analysts is that this move coincided with the break of the downtrend at the end of January. Then the stock broke the 20/50 moving averages in early February on a massive 10% up day.
As typical of these moves, most long investors were shaken out in the long frustrating process. Now though is still a good time to jump in as the stock is only back even with November levels. The closing price of $23.78 is roughly half the July level. So if you believe in wireless data potential in Latin America, then now might be the ideal time to snap up NIHD.
Disclosure: Long NIHD. Please review the disclaimer page for more details.