Swing Trade Idea (SCHW) – December 20, 2022
Our bullish trade for Tuesday, December 20h is The Charles Schwab Corporation (SCHW). SCHW is part of the Financials Sector, which has performed at -4.79% over the last month, with SCHW overperforming relative to its sector at 0.46% over the same period.
SCHW broke above a key level at $75, from where it formed a double bottom at this level. This is a good indication that this level will hold as support. With a Relative Strength of 10 (out of 10), we believe SCHW will continue higher, providing a good risk/reward bullish entry.
As a close, if SCHW were to trade below $75 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $4.16.
