BLK pushes through Monday's high
BlackRock Inc. (BLK) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
BLK ended the month 2.92% higher at 544.09 after gaining $11.22 (2.11%) today, outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 540.57, the share confirmed its breakout through the previous session high after trading up to $5.41 above it intraday.
Daily Candlestick Chart (BLK as at Jun 30, 2020):
Tuesday's trading range has been $12.01 (2.25%), that's slightly below the last trading month's daily average range of $14.93. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BLK. Prices continued to consolidate within a tight trading range between 528.63 and 551.90 where it has been caught now for the whole last trading week.
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 June 23rd, BLK lost -2.90% on the following trading day.
Prices are trading close to the key technical resistance level at 550.00 (R1).
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the close-by swing low at 528.63 where further sell stops could get activated. With prices trading close to this year's high at 576.81, upside momentum might speed up should BlackRock be able to break out to new highs for the year. As prices are trading close to June's high at 567.58, upside momentum could accelerate should the stock mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for BlackRock. Out of 660 times, BLK closed higher 53.94% 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 59.85% with an average market move of 1.10%.