SCHW bull flag pattern; holding 50-day MA is crucial for continued uptrend and next leg higher.

one financial stock Charles Schwab,

And three of the stocks we're going to talk about here, Five Below, Schwab, and Biomear are all in that leading quadrant. And what that means again is that they're uh showing strong relative strength, meaning they're generally outperforming their peers, but the momentum is also uh strong in the relative strength uh indicator, right?

So they're so the uh the relative strength is strong and uh trending in the right direction is the way I would think about it.

The next name and really the name after that uh Schwab and then Biomearin are similar in that they're experiencing what I would probably label as a bull flag pattern.

So, a classic bull flag pattern is where you have a run higher and then you have a parallel decline of lower highs and lower lows. So, looking at this, like I don't know if I would call it a flag pattern.

I might even label this a wedge pattern, which is when you have lower lows and lower highs. But you can see how the two trend lines would basically converge there, right? Sort of narrowing out a little bit.

In either case, we're approaching key support and we're testing key support at the 50-day moving average. So, with the chart like this, I would argue holding the 50-day pretty crucial because as long as we hold the 50-day, that means the setup is still pretty good. we break the 50-day, not necessarily the end of the world, but basically tells you we're no longer in a tactical uptrend because we're failing to hold key support.

Strong charts in history have held an ascending 50-day moving average, setting us up for the next leg higher. And that's certainly what I what I'm going to be looking for here.

Now, we can look further on the chart to see that while the stock has pulled back to the 50-day moving average, the RSI has pulled back to around 45 48 uh which is pretty good.

As long as we hold above 40 on pullbacks, I would argue that's pretty clear that the trend is still generally positive. And we can see that the relative strength has been good over the last uh 3 months, pulling back a little bit in the last couple weeks as the uh stock has pulled back to the 50 days.

So, similar to what we talked about with five below, sort of the ideal outcome here would be testing the 50-day, rotating higher. This becomes a very viable dip. RSI does not break below 40, relative strength starts to turn higher.

That would be the ideal next step for uh Charles Schwab.

So maybe an asset management like Charles Schwab is able to hold key support. We'll see.

So while some of these other charts like Five Below, Charles Schwab, Biomear already showing that strong relative strength, which tells me they're outperforming, they're in good uh technical shape,