Traders Ready To Hit The “Buy” Button On Schwab (SCHW)

We say it over and over again, our entire strategy hinges on being as simple as possible. Trading is hard enough, no need to over complicate things. Our trade idea for the day lives up to our simplicity strategy once again.

The ticker we have on watch to day belongs to Schwab (SCHW) and the setup here is pretty straight forward as you can see from the chart. The level to watch here is that 56 level where we have a pretty strong line of resistance.

However, if SCHW can break through 56, we have a pretty clear path to 60. Now, looking at the chart on SCHW, you see a massive sell off, which was part if the whole banking crisis from not too long ago. This is no reason to be turned off.

In fact, this might lend some confirmation that SCHW may be ready to reclaim some of that loss. After all, the underlying business of SCHW is sound and continues to grow. This means not only are shares trading at a discount, but as we stated earlier in the week, if the financial sector can get going, the market might soon be ready to start buying up this stock on sale.

What we are going to be looking for is a strong move through 56 and can even watch for a retest of that level if we do get a breakthrough. Either way, this is one trade worth keeping both eyes on.

Learn to find these levels for yourself when you join The Profit Machine. There, you’ll learn all about my favorite stocks, setups, strategies, and plenty more. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.