Technical Signals Point to a Possible Breakout for SCHWAB (CHARLES) CORP.

Our stock screener has flagged SCHWAB (CHARLES) CORP (NYSE:SCHW) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:SCHW for potential movement.

Analyzing the Technical Aspects

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Overall SCHW gets a technical rating of 10 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, SCHW is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that SCHW is one of the better performing stocks in the market, outperforming 91% of all stocks. We also observe that the gains produced by SCHW over the past year are nicely spread over this period.
• SCHW is one of the better performing stocks in the Capital Markets industry, it outperforms 94% of 210 stocks in the same industry.
• SCHW is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so SCHW is leading the market.
• In the last month SCHW has a been trading in the 69.47 - 75.55 range, which is quite wide. It is currently trading near the high of this range.

For an up to date full technical analysis you can check the technical report of SCHW

Why is NYSE:SCHW a setup?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:SCHW exhibits a 9 setup rating, indicating its consolidation status in recent days and weeks.

SCHW has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 74.99. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 73.02, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NYSE:SCHW?

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

Of course, there are many ways to trade or not trade NYSE:SCHW and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Our Breakout screener lists more breakout setups and is updated daily.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.