SCHW breaks back above 100-day moving average
Charles Schwab Corporation (SCHW) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
SCHW ended Wednesday at 35.73 surging $0.98 (2.82%), significantly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on September 4th, SCHW actually lost -4.25% on the following trading day. Closing above Tuesday's high at 35.12, the stock confirmed its breakout through the previous session high after trading up to $0.96 above it intraday.
Daily Candlestick Chart (SCHW as at Sep 16, 2020):
Wednesday's trading range has been $1.27 (3.64%), that's far above the last trading month's daily average range of $0.96. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SCHW.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to close back above the 100-day moving average at 35.28.
Though the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 36.17 where further buy stops might get activated. As prices are trading close to September's high at 36.89, upside momentum could accelerate should Charles Schwab mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Its common bullish interpretation has been confirmed for Charles Schwab. Out of 59 times, SCHW closed higher 52.54% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 62.71% with an average market move of 0.55%.