BLK rallies $14.68 (3.25%) after posting strong earnings
BlackRock Inc. (BLK) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
BLK finished Tuesday at 466.54 surging $14.68 (3.25%) on high volume, notably outperforming the S&P 500 (0.05%) following today's earnings report. This is the biggest single-day gain in over three months. Today's close at 466.54 marks the highest recorded closing price since October 8, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 457.10, the market confirmed its breakout through the previous session high after trading up to $9.70 above it intraday.
Daily Candlestick Chart (BLK as at Apr 16, 2019):
BLK reported earnings of $6.61 per share before today's market open. With analysts having expected an EPS of $6.18, BlackRock Inc. beat market expectations by 7.0%. The company's last earnings report was released on Jan. 16, 2019, when BlackRock Inc. reported earnings of $6.08 per share failing market expectations by -3.5%.
Tuesday's trading range has been $13.70 (3.02%), that's far above the last trading month's daily average range of $7.06. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for BLK.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on April 11th, BLK actually gained 1.85% on the following trading day.
Crossing above the upper Bollinger Band for the first time since February 20th, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 436.81 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post Earnings Report" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for BlackRock. Out of 26 times, BLK closed higher 61.54% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 53.85% with an average market move of 0.63%.