Some stocks just quietly get to work—and then suddenly, everyone’s paying attention. That’s exactly what we’re seeing right now in one name at the heart of the financial services world. While much of the market has been noisy and choppy, this stock has been moving with quiet strength—methodically building higher highs, carving out a clean uptrend, and now breaking out with undeniable force. This isn’t a flash-in-the-pan rally. It’s the kind of powerful, technical move that tends to catch momentum traders and long-term investors alike. When a stock in this space starts behaving like this, it’s time to sit up and take notice.

Charles Schwab Corp., symbol: (SCHW) is making a move that’s hard to ignore. After a long stretch of base-building and under-the-radar strength, the stock has launched into a clean, decisive breakout—and it’s happening at the exact moment the financial sector is catching fresh tailwinds. Schwab’s unique positioning across retail trading, banking, and wealth management is proving to be a powerful advantage, especially as market conditions begin to normalize. With earnings momentum building and capital flows picking up, institutions and individual investors alike are piling in. This is a name that’s been quietly setting the stage—and now, it’s commanding attention with authority.

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The technical picture only adds fuel to the fire. Since late October ’24, SCHW has held a powerful buy signal with its 50-day EMA crossing above the 100-day EMA—a classic sign of a shift into sustained bullish control. Not only has that crossover remained intact, but the stock continues to trade well above both moving averages, reinforcing the strength of the underlying trend. This kind of structure doesn’t just happen—it reflects steady accumulation, strong investor conviction, and a clear appetite to own this name on dips. It’s the kind of technical backdrop that tells us this breakout has real legs.

With bullish momentum building and the technical backdrop lining up beautifully, SCHW looks primed to keep grinding higher—and this breakout still feels early. To take full advantage of the upside potential, I’m eyeing a call option that offers serious torque: at current pricing, this contract stands to return 104.8% if the stock rallies just 10% by expiration. That’s the kind of asymmetric setup I look for—a defined risk, paired with a chance to more than double your money. If you found value in this breakdown and want more trade ideas like this delivered straight to your inbox, then don’t miss your chance to join our Weekly Stock and Option Alert. We’re currently offering a 1-month trial for just $1, and it’s one of the best ways to stay plugged in to our handpicked setups. Tap the image below and come see why so many traders are making this part of their weekly edge.

Wishing You the Best in Investing Success,

Chuck Hughes

Editor, Trade of the Day

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