BLK finds buyers around 503.00 for the third day in a row
BlackRock Inc. (BLK) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
BLK ended the week -0.08% lower at 513.30 after gaining $4.79 (0.94%) today, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 509.63, the share confirmed its breakout through the previous session high after trading up to $3.94 above it intraday.
Daily Candlestick Chart (BLK as at May 22, 2020):
Friday's trading range has been $10.57 (2.09%), that's below the last trading month's daily average range of $15.07. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BLK.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Prices are trading close to the key technical support level at 502.47 (S1). BlackRock found buyers again today around 503.00 for the third trading day in a row after having found demand at 504.15 in the prior session and at 503.46 two days ago. The last time this happened on January 24th, BLK actually lost -2.43% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 528.79 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 498.83 where further sell stops might get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for BlackRock. Out of 658 times, BLK closed higher 53.65% 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 60.03% with an average market move of 1.14%.