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TD Ameritrade (AMTD) Testing a Trendline Support

TD Ameritrade $AMTD has been sliding, along with most bank names. It made a high around $63 before a double top formed and price started to slide. AMTD is now trading just above $52, which is right above a key support around $51.50.

AMTD Daily Chart

(click to enlarge)

- The daily chart shows that there was a support pivot in February around $51.50.
- This is a key support pivot, but really, we should allow for elbow space down to the $50.00 level, which is the 2018-low set at the very beginning of the year. 
- The thing is, there is also a rising trendline that supports the $51.50 area. 
- Meanwhile, the RSI is in the oversold area again. 
- We can also argue that the latest dip since July might be the "c" wave of an "abc" correction - this would suggest a possible end to the correction as the c-wave is approaching the same length as the a-wave.
- We can't say that the market will be bullish with a bounce off of $51.50, though it would support the case.
- Instead, we can say that if price regresses back to the mean, there is upside back to $57.50. This is where the 200-, 100-, and 50-day simple moving averages (SMAs) are clustered around. 
- If the $51.50 area does not hold, we can see if $50 does. 
- However, if we get a bounce that gets rejected at $55, we can say that bears would still be in charge.
- In this scenario, we should anticipate further downside towards the next key pivot around $47-$47.20. 

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