Good technical signals and a possible breakout for SCHWAB (CHARLES) CORP.

A possible breakout setup was detected on SCHWAB (CHARLES) CORP (NYSE:SCHW) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:SCHW.

Technical Analysis Observations

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

We assign a technical rating of 7 out of 10 to SCHW. SCHW has been a medium performer in the overall market. Some doubts are observed in the medium time frame, but recent action was very positive.

• The long term trend is still neutral, but the short term trend is positive, so the stock is getting more and more appreciated by traders and investors.
• SCHW is part of the Capital Markets industry. There are 200 other stocks in this industry. SCHW outperforms 88% of them.
• In the last month SCHW has a been trading in the 69.39 - 75.02 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.
• When comparing the yearly performance of all stocks, we notice that SCHW is one of the better performing stocks in the market, outperforming 86% of all stocks. However, this relatively good performance is mostly due to a recent big move.
• SCHW is currently trading in the middle of its 52 week range. The S&P500 Index is currently trading in the lower part of its 52 week range, so SCHW is still doing slightly better than the market.

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:SCHW currently has a 8 as setup rating:

SCHW has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 70.98, a Stop Loss order could be placed below this zone.

How can NYSE:SCHW be traded?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Every day, new breakout setups can be found on ChartMill in our Breakout analyzer.