BLK breaks back above 20-day moving average
BlackRock Inc. (BLK) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BLK finished Thursday at 551.77 gaining $7.45 (1.37%), outperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Trading $4.97 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 10th, BLK lost -5.89% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (BLK as at Jul 02, 2020):
Thursday's trading range has been $11.83 (2.13%), that's slightly below the last trading month's daily average range of $15.11. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BLK.
The stock managed to close back above the 20-day moving average at 547.22 for the first time since June 25th.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 561.99 where further buy stops could get triggered. With prices trading close to this year's high at 576.81, upside momentum might accelerate should BlackRock be able to break out to new highs for the year. Further buying could move prices higher should the market test June's nearby high at 567.58.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for BlackRock. Out of 441 times, BLK closed higher 56.24% 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 59.64% with an average market move of 0.67%.