Why SCHD Could Be a Quick Win for Savvy Scalpers Eyeing Upside
As always, we like to keep it clean and simple, with technicals and analysis that's easy to see and understand. Let's get into it:
The Schwab U.S. Dividend Equity ETF (SCHD) has recently experienced a downturn, but several factors suggest a near-term upward reversal:
Technical Indicators:
1. SCHD's 100-day and 200-day simple moving averages are $27.95 and $26.79, respectively, with the current price above both, suggesting a longer-term bullish trend
2. StochRSI oversold on mult timeframes
3. Reached limit of reversal move after a Wave 5, which can act as near-term support
Recent Developments:
Dividend-paying stocks, including those in SCHD, have faced challenges due to volatility in the 10-year Treasury yield. However, with expectations of more stable interest rates, dividend-focused investments like SCHD could become more attractive.
Investor interest in dividend-paying equity ETFs has increased, with inflows more than doubling over the past month. This heightened demand could positively impact SCHD's price.
We see a near-term reversal to the $28.80 area -- a $0.50/share increase from current levels .
Be alert.
Trade green.
