BLK unable to break through key resistance level
BlackRock Inc. (BLK) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
BLK finished Wednesday at 582.15 surging $11.11 (1.95%), notably outperforming the S&P 500 (0.64%). This is the biggest single-day gain in over two weeks.
Daily Candlestick Chart (BLK as at Aug 05, 2020):
Wednesday's trading range has been $11.69 (2.03%), that's slightly above the last trading month's daily average range of $10.05. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BLK.
Unable to break through the key technical resistance level at 583.55 (R1), the stock closed below it after spiking up to 584.92 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on Monday, BLK lost -1.54% on the following trading day.
Though the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 592.48, upside momentum might speed up should BlackRock be able to break out to new highs for the year.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for BlackRock. Out of 391 times, BLK closed lower 58.06% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after six trading days, showing a win rate of 46.80% with an average market move of -0.12%.