Charles Schwab Corporation (SCHW) manages over $9 trillion in client assets. The weekly chart shows an uptrend that started in late 2023, and the stock is now trading at new highs. The stock has followed an upward trendline that began at the low of $48 in 2023. This trendline has provided consistent support, helping the stock grow steadily.

Breaking Resistance Levels

SCHW has more than doubled in value, recently breaking through the $96-100 resistance to reach $104. This upward movement indicates significant buying activity. For traders, any pullbacks to the trendline around $76-78 could present a good buying opportunity. This level is 25% lower than current prices but still aligns with the overall upward trend. If the stock drops below this trendline, it could signal a change. As long as it stays above, SCHW remains in an uptrend with the possibility of higher prices. The upcoming test at $104 will reveal whether the stock continues to rise or takes a pause. With SCHW testing highs around $104, the momentum clearly favors buyers. This trend is also backed by strong fundamentals. The recent Q4 2025 earnings report showed a 12% increase in net new assets year-over-year. Additionally, the Federal Reserve’s plan to keep interest rates stable through the first half of 2026 supports financial services companies.

Options Strategies For Traders

Traders who think this upward strength will continue may benefit from selling cash-secured puts with February or March 2026 expiration dates. Targeting strike prices around the previous resistance of $96-$100 allows for earning premiums if the stock holds its value or acquiring shares at a desirable price. This strategy leverages the stock’s solid support structure that has been reliable since 2024. For those wanting to profit from further gains directly, bull call spreads provide a lower-risk option. Buying a March 2026 $105 call and selling a $115 call can capture gains if the stock rises. This method is more cost-effective than buying calls outright, especially after a strong rally. The main risk is a drop below the long-term upward trendline, now estimated to be near $78. This level can act as a guideline for bearish positions or portfolio protection. Buying long-dated puts with a strike price around $75 can hedge against significant market shifts, similar to the sharp correction we saw in mid-2024. However, as long as the stock stays above this key trendline, the path appears to be upward. Implied volatility has risen with this breakout, making strategies that involve selling premiums more appealing. We should keep a close eye on the $100 level; if SCHW holds above it, that would confirm that previous resistance has turned into new support. Create your live VT Markets account and start trading now.

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