BLK breaks back above 100-day moving average
BlackRock Inc. (BLK) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BLK ended Wednesday at 561.73 gaining $13.57 (2.48%) on high volume, notably outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 553.43, the market confirmed its breakout through the previous session high after trading up to $13.45 above it intraday.
Daily Candlestick Chart (BLK as at Sep 16, 2020):
Wednesday's trading range has been $18.08 (3.28%), that's above the last trading month's daily average range of $11.68. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for BLK.
One bullish candlestick pattern matches today's price action, the White Candle.
BlackRock managed to close back above the 100-day moving average at 550.88 for the first time since September 9th. Unable to break through the key technical resistance level at 564.40 (R1), the share closed below it after spiking up to 566.88 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move lower than 547.28 in the prior session, the stock found buyers again around the same price level today at 548.80. The last time this happened on September 2nd, BLK actually lost -4.75% on the following trading day.
While BLK is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the eight 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 443 times, BLK closed higher 56.21% 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 60.27% with an average market move of 0.70%.