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Charles Schwab (SCHW) - Get Free Report surged over 1.5% on Friday with the help of a nice bump in volume. This breakout-type move cleared a very heavy resistance area near the $30.50 area. Charles Schwab is set up well for more upside with layers of support now in place.

Since the early July low, Charles Schwab has been tracing out an impressive bull run. By the end of the month, the stock had gained nearly 20% from the Brexit low and was still well below overbought levels. The stock continued to struggled with its 200-day moving average as August opened as the post-Brexit rally appeared to have run its course. It took a powerful breakout move on Aug. 5 to get the bull run back on track. Schwab gained over 5% that day, its best single-day performance since the Brexit low, as it extended the gain off the July low to 25%.

Charles Schwab has been trading in a very narrow light-volume range since the Aug. 5 surge. A very heavy resistance area near the June 3 breakdown gap has kept shares in check. On Friday, the stock took out the this key area near $30.60 and is set up well for more upside. In the near term, investors should consider the stock a low-risk buy as long as it remains above $30. A close back below this level would violate last week's low, sending a clear warning sign that's Friday's breakout had failed. On the upside, a important hurdle will be the May high. Once clear of the $31.10 area, Schwab has a clear path to new 2016 highs.

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Disclosure: This article is commentary by an independent contributor. At the time of publication, the author was long SCHW.