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Schwab has been hemmed in by the post Motif deal breakdown gap left behind back on June 24th.  This key zone($36.00) held the multi week July highs as well as the early August peak.  SCHW is bumping up against this area again this week as a solid basing pattern continues to develop.  

Shortly after the post Motif deal  https://www.zacks.com/stock/news/991647/schwab-schw-closes-deal-to-acquire-certain-assets-of-motif?cid=CS-MKTWTCH-HL-analyst_blog|company_news_-_finance_sector-991647, sell off SCHW began to base in a narrowing range.  A second straight higher monthly low is in place while the stock remains well below overbought levels(daily MACD).  

We believe a clear take out of the $36.00 area could spark a fresh rally leg.  Initial target is the declining 200 day moving average($39.75).  On the downside, a close back below $34.00 would violate this week’s low indicating more basing will be needed before SCHW can mount a meaningful rebound. 

Long SCHW in some managed accounts.