Stock Quotes in this Article: AZN, DTV, RAD, T

BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.

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From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.

Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.

While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis. Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.

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These "most active" names are the most heavily-traded names on the market -- and often, uber-active names have some sort of a technical or fundamental catalyst driving investors' attention on shares. And when there's a big catalyst, there's often a trading opportunity.

Without further ado, here's a look at today's stocks.


Nearest Resistance: $36.75

Nearest Support: $35.50

Catalyst: DirecTV Acquisition

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First up is AT&T (T), the $190 billion telecom giant that's making waves following the firm's $48.5 billion acquisition offer for DirecTV (DTV) in cash and stock. The deal is getting significant attention today, as investors try to make heads or tails of a transaction that would add significant TV subscribers to AT&T's business. If it goes through, the acquisition would make AT&T the second-largest pay TV operator in the U.S.

But the deal is far from done at this point, and we're seeing that reflected in the big premium left in shares of DTV as I write. Merger arbitrageurs are having to short AT&T to make a play on the deal, and so shares are down around 1% as I write. If AT&T can breakout above resistance at $36.76, there's a lot more upside room for shares to run higher.


Nearest Resistance: $77.50

Nearest Support: $65

Catalyst: Rejected Pfizer Bid

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AstraZeneca (AZN) is another big name that's getting attention from a potential acquisition deal -- albeit not in a positive way. AZN is down more than 10% this afternoon, following news that the London-based pharma firm had rejected the $117 billion takeover deal from Pfizer (PFE). After Pfizer announced that it wouldn't pursue a hostile takeover, spurned shareholders are unloading the stock today.

From a technical standpoint, AZN looks somewhat "toppy" here. But the good news for bulls is that shares are fast approaching an important support level at $65. If AZN can catch a bid at that level, it could set the stage for another attempt at higher levels this summer.


Nearest Resistance: $87.50

Nearest Support: $77.50

Catalyst: Acquisition

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The other side of the AT&T deal is DirecTV (DTV), the satellite TV operator that's on the receiving end of the cash. After its announcement, there's a 11.75% premium currently left in DTV's share price, a big merger arbitrage opportunity considering the sheer dollar size of the acquisition offer. The potential risk of a deal-breaker scenario, such as regulatory approval, is the reason for the big difference between DTV's current share price and AT&T's offer value.

From a technical standpoint, shares of DTV have looked attractive for a while, bouncing higher in a textbook uptrend. Even through shares are a fair distance from support at the moment, investors who aren't risk-averse could be looking at a big opportunity in DTV right now. In the meantime, the 50-day moving average is a good place to keep a protective stop.

Rite Aid

Nearest Resistance: $8

Nearest Support: $7.50

Catalyst: Technical Setup

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Drugstore chain Rite Aid (RAD) is enjoying a 3.3% bounce this afternoon thanks to technical strength, a move that's just the latest in a series of auspicious price moves. RAD has been bouncing its way higher in a textbook uptrending channel for the last several months, making the firm very buyable on the dips. If shares can take out resistance at $8, then it makes sense to follow buyers' show of strength. Otherwise, wait for the next pullback to trendline support before jumping into this momentum name.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.


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At the time of publication, author had no positions in the names mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji