Bullish Chart Pattern Signals AMTD is an Immediate Buy

TD Ameritrade broke from a cup-and-handle on high volume


TD Ameritrade (AMTD) — This online discount brokerage service has been in a powerful uptrend since it broke from a double-top in April at $22. S&P recently upgraded AMTD to “buy” from “hold” because of improving retail sentiment and better asset growth. New client assets grew by 10% year over year in the fiscal first quarter of 2014, and total trades rose by 28%.

Consensus estimates are for earnings of $1.41 per share in fiscal 2014, ended in September, and $1.67 in fiscal 2015. The stock pays an annual dividend of $0.48 for a 1.4% yield.

Since its breakout in April, the stock has maintained a bullish trend with support at its 50-day moving average. In January, it broke to a new high, retreated to its 50-day moving average, and then rallied to $33-$35, where from mid-February until Wednesday, it formed the handle of a cup-and-handle — a very bullish indicator.

On Thursday, it broke from the handle of the formation on high volume with a trading target of $40. Long-term investors may want to hold AMTD for even greater gains.

AMTD Chart
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Chart Key

Article printed from InvestorPlace Media, http://investorplace.com/2014/03/trade-day-td-ameritrade-amtd/.

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