Blackstone Group (BX) has been shaping up positively on the charts, breaking out of a base pattern in the past two months.
Not all of our indicators are "in gear," but the price action has been bullish. Let's take a look at the charts and indicators.
In this one-year daily bar chart of BX, above, we can see the sideways trading that dominated until early December. BX traded between $23 or so on the downside and the $29-$30 area on the upside. Prices and the moving averages did not improve until December, when BX broke above the 50-day and 200-day moving averages. The slopes of these two trend-following indicators turned up and we can see a bullish golden cross at the start of 2017. The On-Balance-Volume (OBV) line has moved in fits and starts for much of the year, with a downward bias since August. The momentum study shows weakening momentum numbers from December in contrast to the higher price highs. This bearish divergence can mean gains slow in the short run.
In this weekly chart of BX, above, we can see a decline in 2015 and a possible triple bottom in 2016. Prices recently rallied above the 40-week moving average line and the slope of the line has turned positive. The weekly OBV line is still pointed down, unfortunately. The MACD oscillator is in a bullish setup, rising above the zero line.
Strategy: Sometimes if you wait for everything to line up just right, you can miss an opportunity. BX has made a bottom and is turning upward even if our indicators don't agree at this point in time. Aggressive traders could go long BX on a close above $32. I would have a stop-loss below $29 after buying the upside breakout.
