BLK still stuck within tight trading range
BlackRock Inc. (BLK) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
BLK finished the month 5.68% higher at 575.01 after gaining $1.92 (0.34%) today on low volume, slightly underperforming the S&P 500 (0.77%). Trading up to $5.65 lower after the open, BlackRock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 573.09, the share confirmed its breakout through the prior session high after trading up to $2.23 above it intraday.
Daily Candlestick Chart (BLK as at Jul 31, 2020):
Friday's trading range has been $8.64 (1.51%), that's slightly below the last trading month's daily average range of $10.22. 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. Prices continued to consolidate within a tight trading range between 564.00 and 580.21 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Hammer. The last time a Hammer showed up on May 4th, BLK gained 0.83% on the following trading day.
Although the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the nearby swing high at 580.21 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 564.00 where further sell stops might get activated. With prices trading close to this year's high at 592.48, upside momentum could accelerate should the market be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hammer" stand out. Its common bullish interpretation has been confirmed for BlackRock. Out of 28 times, BLK closed higher 64.29% 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 71.43% with an average market move of 2.81%.