Charles Schwab Corporation (SCHW) manages over $9 trillion in client assets. The weekly chart indicates an uptrend since late 2023, with the stock trading in new territory.
The stock respected an ascending trendline starting from the $48 low in 2023. This trendline has supported the stock through various tests, providing a stable foundation for growth.
Breaking Resistance Levels
SCHW has more than doubled, recently breaking resistance at $96-100 to reach $104. This momentum suggests major accumulation.
For traders, pullbacks to the trendline around $76-78 could offer a risk-reward setup. This reflects 25% below current levels yet aligns with the broader uptrend.
A fall below this trendline could indicate a shift. Until then, SCHW stays in an uptrend with momentum favouring higher prices.
The test at $104 will show if the rally continues or consolidates gains.
Given the powerful uptrend in SCHW, which is now testing highs around $104, momentum is clearly with the bulls. This move is supported by fundamentals, as we saw with the recent earnings report for Q4 2025 that showed net new assets grew by 12% year-over-year. The Federal Reserve also signaling stable rates through the first half of 2026 provides a favorable backdrop for financial services companies.
Options Strategies For Traders
For traders expecting this strength to continue, selling cash-secured puts with February or March 2026 expiration dates could be a solid strategy. Targeting strike prices near the old resistance of $96-$100 allows us to either collect premium if the stock holds up or get assigned shares at a level we were comfortable buying anyway. This approach capitalizes on the stock’s underlying support structure that has proven reliable since 2024.
Alternatively, for those wanting to play the upside more directly, bull call spreads offer a defined-risk way to participate. Buying a March 2026 $105 call while simultaneously selling a $115 call could capture further gains if the stock continues its climb. This strategy significantly lowers the cost of entry compared to buying calls outright, which is prudent after such a strong run.
The primary risk remains a breakdown of the long-term ascending trendline, which we now calculate to be near the $78 mark. We can use this level as our line in the sand for bearish positions or portfolio protection. Buying long-dated puts with a strike price around $75 would serve as a hedge against a significant market shift, similar to the one we saw during the sharp correction in mid-2024.
Until that key trendline is violated, however, the path of least resistance appears higher. Implied volatility has increased with this recent breakout, making strategies that involve selling premium more attractive. We should watch the $100 level closely, as a successful hold above it would confirm that old resistance has now become new support.
