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I believe in using fundamental analysis when evaluating which stocks to invest in, but I also think it is important to look at the technical side as well. After doing fundamental analysis, I like to see how a stock looks based on the charts, including what the 50- and 200-day moving averages are, and what the relative strength index is, before deciding to buy. When evaluating this data, you can find stocks that appear to be starting what might be a significant new uptrend.

One potential sign of this is when the 50-day moving average crosses above the 200-day moving average. This event is called a "Golden Cross Formation" and many view it as a bullish sign. You can read more about the Golden Cross Formation here.

If you are serious about making money in stocks, I strongly encourage investors to be aware of how a stock looks in terms of the charts as this can give you an edge over using just fundamental analysis.

The shares of the following 10 stocks have reasonable valuations, and (most) have strong balance sheets. The fact that the charts might be indicating a new uptrend is an added bonus. Some of these uptrends might last for months or years, while others may fizzle out. Here are the companies, which all have a "Golden Cross Formation" recently appearing on their chart:

Goodyear Tire (GT) shares are trading at $14.64. These shares have a 52-week range of $9.10 and $15.45. The 50-day moving average is $13.30 and the 200-day moving average is $11.52.

Fundamentals: Estimates for GT are about $0.69/share in 2011 and $1.88 for 2012. Book value is stated at $2.65. Many consumers have put off buying tires in the recession, which means there should be strong demand in the future.

Dean Foods (DF) is trading at $9.80. These shares have a 52-week range of $7.13 and $17. The 50-day moving average is $10.04 and the 200-day moving average is $9.92, so the shares are trading close to support levels.

Fundamentals: Estimates for DF are about $0.58/share in 2011 and $0.78 for 2012. Book value is stated at $8.23. This company has a substantial amount of debt, which adds risk to this investment.

MEMC Electronic Materials (WFR) is trading at $12.31. These shares have a 52-week range of $9.19 and $16.99. The 50-day moving average is $12.66 and the 200-day moving average is $11.69, so these shares are trading close to support levels.

Fundamentals: Estimates for WFR are about $1.16 per share in 2011. David Alton Clark wrote a great article on WFR. In the solar sector, I feel LDK Solar (LDK) is a much better value, and I wrote about that here.

Mueller Water Products (MWA) is trading at $3.94. Shares have a 52-week range of $2.21 and $5.99. The 50-day moving average is $4.08 and the 200-day moving average is $3.56, so these shares are trading close to support levels.

Fundamentals: Estimates for MWA are for a loss of $0.04 in 2011 and profit of $0.18/share in 2012. Book value is stated at $2.55. David Tepper, who runs Appaloosa Management, recently disclosed buying a 5.8% stake in MWA.

Bank of America (BAC) is trading at $13.97. These shares have a 52-week range of $10.91 and $19.86. The 50-day moving average is $14.33 and the 200-day moving average is $13.54, so these shares are trading close to support levels.

Fundamentals: Estimates for BAC are about $1.33 per share in 2011 and $1.87 for 2012. This puts the P/E ratio at about 10. There is a possibility for higher dividends in the future. Book value is stated at $20.99.

Level 3 Communications (LVLT) is trading at $1.27. Shares have a 52-week range of $0.83 and $1.77. The 50-day moving average is $1.27 and the 200-day moving average is $1.10, so the shares are trading close to support levels.

Fundamentals: Estimates for LVLT are for a small loss in 2011. On this stock, the balance sheet is not as strong as some other stocks here. These shares are speculative, and some investors are hoping for a buyout.

Micron Technology (MU) is trading at $10.21. These shares have a 52-week range of $6.36 and $11.95. The 50-day moving average is $10.48 and the 200-day moving average is $8.52, so the shares are trading close to support levels.

Fundamentals: Estimates for MU are about $0.50/share in 2011 and $1.22 for 2012. Book value is stated at $8.22 per share.

Hercules Offshore (HERO) is trading at $5.64. Shares have a 52-week range of $2.05 and $6.29. The 50-day moving average is $4.19 and the 200-day moving average is $3.01.

Fundamentals: Estimates for HERO are for a loss of $0.53/share in 2011. Shares look overbought right now, so it might be smart to wait for pullbacks before considering this stock. Book value is stated at $7.43.

Delta Petroleum (DPTR) shares have a 52-week range of $0.67 and $1.95. The 50-day moving average is $0.84 and the 200-day moving average is $0.82. Shares are trading close to support levels.

Fundamentals: Estimates for DPTR are for a loss of about $0.40/share in 2011. I do not think this company has a good balance sheet and these shares are speculative, but they do have upside potential after a recent drop.

Yingli Green Energy Holding Co. (YGE) is trading at $11.59. These shares have a 52-week range of $8.31 and $14.29. The 50-day moving average is $11.57 and the 200-day moving average is $11.31, so shares are trading close to support levels.

Fundamentals: Estimates for YGE are about $1.61 per share in 2011. This puts the P/E ratio at about 7. Book value is stated at $8.18. The nuclear crisis in Japan should result in added interest for solar energy.

Disclosure: I am long BAC. The data is sourced from Yahoo Finance and Stockcharts.com. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes.

Source: Finding Uptrends: 10 Stocks With a Golden Cross Formation