Good morning Traders!
A decade of loose monetary policy and easy money, created a big debt problem, which many now warns, is coming back to haunt the markets.
Charles Schwab is not a lone rider in this debt train, however, with a 7 trillion dollar empire, it has been in the spotlight of investors minds.
The stock has plunged over 30% in the month of March, and while some investors are bailing out, other thinks the stock has suffered enough, and the cracks might not end up turning into a sinking hole.
I’ll be looking for a pullback to release some of this strong selling pressure, and then for a rollover setup. First line is around the level of 65 – the gap close and a shallower pullback, the second one is around the 75 area – the breakout level. My preferred scenario is for a pullback to the 75 area, as it allows for more room to move before the area of 60, which may act as support should the price trade above it.
Happy Trading!
