Chart of the Week: BlackRock
Good morning everybody! Time for our chart of the week. We’re gonna focus this week on BlackRock; BLK is the symbol. So let’s take a look at this chart as we go along. It’s pretty bullish right now.
As you can see here, having crossed recently the March to April highs – coming in at around $841 over here – and surging up there earlier in the month and kind of consolidating above that area and a little bit below more recently. A couple of days ago, we shot out above $855 and followed through at day 62.
Now we’re at modestly overbought. Of course, overbought doesn’t necessarily mean to sell. What it means is to be prepared to buy on pullbacks. And that’s exactly what the big institutions, the big investors will be doing with BlackRock.
So we see that relative strength is up there near 70%. MACD has been on a buy signal for the past few weeks. And Chaikin money flow has been robust for a couple of months now, since we flipped bullish back in late May.
One thing I wanted to also point out to you is the strength in what’s called the on-balance volume. If this indicator is rising, it means the days the markets are up, the heaviest volume is coming in on those days. A nice uptrend of higher highs and higher lows in the on-balance volume too.
All in all, I know this is an expensive stock, but if we do get a bit of pullback here towards this $840 – $850 level, I think it’s certainly worthy of a buy. I think the stock’s got some room over the next several months. As long as this market remains strong, the stock gonna get up to the $950 – $1,000 level, which isn’t too far away – it’s less than 17% from current levels.
So take a look at BlackRock; BLK is the symbol.
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