Charles Schwab Corporation (SCHW) manages over $9 trillion in client assets. The weekly chart shows a clear uptrend since late 2023, as the stock moves into new highs. The stock has followed an upward trendline that started from a low of $48 in 2023. This trendline has provided consistent support, helping the stock grow steadily.

Breaking Resistance Levels

SCHW has more than doubled, recently breaking past the $96-$100 resistance range to reach $104. This strong movement indicates significant buying interest. Traders can look for pullbacks to the trendline around $76-78 as a potential buy opportunity. This level is 25% lower than current prices but still fits within the overall uptrend. If the stock drops below this trendline, it could signal a change in direction. Until then, SCHW remains in an uptrend with momentum pointing toward higher prices. The test at $104 will show if the upward movement continues or if it consolidates. Given the strong uptrend, with SCHW now testing highs around $104, bullish momentum is clear. This surge is backed by solid fundamentals, highlighted by the recent Q4 2025 earnings report, which showed a 12% increase in net new assets. Additionally, the Federal Reserve’s indication of stable interest rates through the first half of 2026 creates a positive environment for financial services companies.

Options Strategies For Traders

For traders expecting this strength to last, selling cash-secured puts with February or March 2026 expiration dates could be a good strategy. Targeting strike prices near the old resistance of $96-$100 allows traders to earn premiums if the stock holds or acquire shares at a price they are comfortable with. This strategy takes advantage of the stock’s reliable support that has been in place since 2024. Alternatively, those looking to capitalize on potential gains can consider bull call spreads for a lower-risk approach. Buying a March 2026 $105 call and selling a $115 call can capture further profits if the stock trend continues. This strategy costs less than buying calls outright, which is sensible after a strong run. The main risk is a drop below the long-term trendline, which we estimate to be near $78. This level can serve as a benchmark for bearish positions or portfolio protection. Buying long-dated puts with a strike price around $75 can help hedge against significant market shifts, similar to the sharp correction seen in mid-2024. Until this key trendline is broken, however, the path forward seems to lead higher. Implied volatility has risen with this recent breakout, making strategies that involve selling premiums more appealing. We’ll need to monitor the $100 level closely, as staying above it would confirm that previous resistance is now acting as new support. Create your live VT Markets account and start trading now.

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