One of the difficulties for a swing trader in a late stage rally is finding stocks that still have optimal risk/reward characteristics.
Swing Trade Picks
An area to keep a close eye on this week are companies that serve as retail brokers. Stocks like AMTD, ETFC, and SCHW. All the stocks are exhibiting the same pattern, but let’s take AMTD as an example.
After underperforming the market for months, there was a volatility spike higher on the 17th of June, most likely related to some senate hearings that were ongoing.
Since then, the stock has been consolidating but sellers have certainly lost control of the stock. The main level is just under 32, and if it gets above that it indicates a significant trend change and the possibility for a move higher.
Levels To Watch
Initial target is 32.75, and if it can get to that level, create a higher low, and overtake that level then a test of recent 52 week highs around 35.50 are in the cards. A loss of 30.50 would mean that sellers have retaken control and is a good place for a stop loss.
