5 Big Stock Charts You Need to See
Last up is brokerage firm TD Ameritrade (AMTD - Get Report), the one firm that's primed to benefit most directly from a rally in stocks -- and its chart shows it. AMTD has gotten hammered over the last year, underperforming the broad market by around 20% since last January. That's come largely at the hands of prolonged low trading volumes for stocks and historically low interest rates earned on its cash float -- an equity rally fixes both of those problems.
But that's a long-term thesis. In the short term, the double-bottom breakout in AMTD holds the key to gains. A double bottom is a reversal pattern that's formed by two swing lows that bottom out at approximately the same price level. They're separated by a peak, a level that marks the trigger point for this trade. AMTD broke out above its peak on Wednesday, confirming the move with yesterday's open and close above that level.
This is a long-term pattern, and as a result, it's got long-term trading implications. That means that we could see AMTD move higher pretty quickly over the next couple of months. RSI adds some extra confidence to this trade as well - but price is the most important thing to watch here for an entry. I'd recommend going long on this stock's next white bar day; then, I'd recommend keeping a protective stop in place just below $15.To see this week's trades in action, check out this week's Must-See Charts portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts