Five Star Stock Watch: TD Ameritrade

The company: TD Ameritrade

Ticker Symbol: AMTD

Sector: Financials

Industry: Investment Brokerage

TD Ameritrade Holding Corporation provides securities brokerage services and technology-based financial services to retail investors, traders, and independent registered investment advisors (RIAs) in the United States. The company’s offerings include TD Ameritrade, TD Ameritrade Institutional, thinkorswim, Investools, Amerivest and TD Ameritrade Corporate Services.

It also offers products and services, such as common and preferred stocks, exchange-traded funds, options, futures, foreign exchange products, mutual funds, fixed income products, as well as margin lending, cash management services, and annuities. The company provides its services primarily through the Internet, retail branches, mobile trading applications, and interactive voice response and registered representatives via telephone.

Please take a look at the 1-year chart of TD Ameritrade's stock below with my added notations:

AMTD has been trading mostly sideways for the last 3 months. Over that period of time, the stock has formed an obvious resistance level at $28 (lavender), and in addition, the stock has also created a strong level of support at $25.50 (light blue).  At some point the stock will have to break one of those two levels.

TD Ameritrade is set to release quarterly earnings on October 29th.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!