The bearish DailyPlay we chose for Tuesday, July 31st is Charles Schwab (SCHW). SCHW is part of the Financial Sector (XLF). Over the last month, XLF has experienced a 5.87% move higher and its 1m and 6m trend turned bullish on 7/23 but recently bounced lower off its $28.25 resistance level.
Charles Schwab’s 1m and 6m trends turned bearish yesterday and recently bounced lower off its $54 resistance level. With a technical score of 5 (out of 10), SCHW is a neutral stock that has started to trend lower.
As a stop loss, if SCHW was to trade above $54 for multiple days, this would invalidate our analysis and suggest getting out of the trade.
Options Education Series: How to Leverage Technical Analysis w/ Options Trading– Thurs 8/2 @ 4:15PM EST