SCHW - Bullish pennant or symmetrical triangle
Updated
A pennant is a type of continuation pattern formed when there is a large movement in a security, known as the flagpole, followed by a consolidation period with converging trend lines—the pennant—followed by a breakout movement in the same direction as the initial large movement, which represents the second half of the flagpole. (Source: Investopedia)
SCHW has been trending up and with the recent quarterly report had a massive gap up followed by a tight consolidation.
Confirmations to look for:
1. Fundamentals - Look at industry sector and other earnings report that can support the bullish thesis for the continuation.
2. Breakout with High Volume
3. Retest of previous resistance or sellers reaction points
Early entry is 65.51
Entry with confirmation can be around 66
Price Target is 68-70
If price holds 68, then 73, 75
SCHW has been trending up and with the recent quarterly report had a massive gap up followed by a tight consolidation. Confirmations to look for:
1. Fundamentals - Look at industry sector and other earnings report that can support the bullish thesis for the continuation.
2. Breakout with High Volume
3. Retest of previous resistance or sellers reaction points
Early entry is 65.51
Entry with confirmation can be around 66
Price Target is 68-70
If price holds 68, then 73, 75
Note
With the sell off, now the bullish pennant is looking more like a falling wedge.
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