blue-chip

One NYSE – Listed Brokerage Services Stock Trading Near Resistance Levels: SCHW

Oct 17, 2024 | Team Kalkine

Read Time :10 Mins

One NYSE – Listed Brokerage Services Stock Trading Near Resistance Levels: SCHW

SCHW:NYSE

Investment Type

Large-cap

Risk Level

Action

Rec. Price (US$)

The Charles Schwab Corporation (NYSE: SCHW)

The Charles Schwab Corporation (NYSE: SCHW) is a savings and loan holding company. The Company, through its subsidiaries, engages in wealth management, securities brokerage, banking, asset management, custody, and financial advisory services.

Recommendation Rationale – Sell at USD 71.91

SCHW can be adversely impacted by the general environment, such as economic, corporate, securities market, regulatory, and geopolitical developments. The deterioration in the housing as well as credit markets and decreases in securities valuations could negatively impact the results of operations and capital resources.
A significant change in client cash allocations might impact SCHW’s income. Also, significant interest rate changes might affect its profitability.
The company’s share price is trading close to its R1 level recommended on Sept 18, 2024. Therefore, there can be a possible decline from the specified resistance levels.

SCHW’s Daily Price Chart

SCHW Daily Technical Chart, Data Source: REFINITIV

Fundamental Valuation

SCHW is exposed to the risks related to general economic conditions such as changes in the macroeconomic environment, the negative impact of geopolitical uncertainties, etc. Therefore, SCHW is expected to trade at slight discount considering the risks associated. For conducting the valuation, the following peers have been considered: State Street Corp (STT.N), LPL Financial Holdings Inc (LPLA.OQ), etc.

Considering the current trading levels, risks associated, and volatile market conditions, a ‘Sell’ rating is assigned to the ‘SCHW’ at the closing market price of USD 71.91 as of 17^th October 2024

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 17 October 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.

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