Bullish Chart Pattern Signals AMTD is an Immediate Buy

by Sam Collins | March 25, 2014 1:21 am

TD Ameritrade (AMTD[1]) — 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.

03 25 14 amtr 300x195 Bullish Chart Pattern Signals AMTD is an Immediate Buy
Click to Enlarge

chart key 300x84 Bullish Chart Pattern Signals AMTD is an Immediate Buy[2]

  1. AMTD: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMTD
  2. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: http://investorplace.com/2014/03/trade-day-td-ameritrade-amtd/
Short URL: http://invstplc.com/1kYIk1w