In the last few weeks, asset manager Blackrock’s (BLK) relative strength recovery trend within the SIA S&P 100 Index Report has accelerated. BLK has rocketed up out of the red zone and back into the Green Favored Zone for the first time since January. On Friday, BLK finished in 25th position, up 5 spots on the day and up 44 places in the last month.
Last month, a downswing in Blackrock (BLK) shares bottomed out above $500.00 with a big Bullish Engulfing Candle on a volume spike indicating a decisive shift in investor sentiment. Since then, the shares have been steadily clawing back lost ground, establishing a new uptrend of higher lows, and regaining their 50-day moving average. Last week, accumulation accelerated again with the shares staging a breakaway gap up through $700.00, and breaking through $760.00 resistance to trade at their highest level since January.
Based on a previous trading range, next potential resistance appears in the $880.00 to $920.00 area around the $900.00 round number. Initial support moves up toward the $700.00 round number, which is near the top of the recent gap.
Blackrock (BLK) shares have turned around dramatically in recent weeks. Last month, a selloff that started at the beginning of this year was contained by a long-term 45-degree uptrend support line, enabling the shares to bottom out near $525.00. Since then, they have been under renewed accumulation, rallying up toward $775.00 without even a 3-box correction along the way, and completing bullish patterns including a Double Top and a Spread Double Top along the way.
A recent breakout has signaled the start of a new upleg. Next potential resistance appears in the $813.20 to $897.85 zone between previous column highs and lows. Initial support appears near $707.95 based on a 3-box reversal.
With its bullish SMAX score increasing to 8, BLK is exhibiting strength against the asset classes.
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