Bullish Signal Has Never Failed This Bank Stock

Jake Scott

Mon, Mar 10, 2025, 9:35 AM 1 min read

Charles Schwab Corp (NYSE:SCHW) is tumbling alongside different major slope stocks, arsenic economical uncertainty and persistent selling unit measurement connected the fiscal sector. With Wall Street connected borderline implicit tariff negotiations and recession concerns, traders are keeping a adjacent oculus connected slope stocks for imaginable worth opportunities amid the volatility.

On the charts, Charles Schwab stock has erased its 11.8% January summation and is present down 4.1% year-to-date, connected way for its 11th nonaccomplishment successful 13 sessions. Last seen 4.9% little astatine $70.95, the banal is wrong striking region of its 260-day moving average, a historically bullish level.

According to Schaeffer's Senior Quantitative Analyst Rocky White, SCHW tested this trendline 5 times successful the past 3 years, and each time, the banal was higher 1 period aboriginal with an mean 8.4% gain. A akin rebound from existent levels would spot the equity conscionable beneath $77, approaching its Feb. 11, 13-month precocious of $84.50.

An unwinding of bearish sentiment successful the options pits could supply further tailwinds. Charles Schwab stock’s 50-day put/call measurement ratio of 1.39 astatine the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks successful the 90th percentile of the past year, signaling an utmost penchant for puts.

Additionally, SCHW’s Schaeffer's Volatility Scorecard (SVS) of 91 retired of 100 suggests the banal tends to outperform volatility expectations, making it an appealing setup for premium buyers.