A long-time Real Money subscriber emailed me Wednesday asking what I thought technically of shares of asset management firm BlackRock (BLK) . BlackRock CEO Larry Fink has been reported in the financial media to have said that the "SVB collapse may be the start of a 'slow rolling crisis'."
Let's check the charts of BLK and see where the dominos could be heading.
In this daily bar chart of BLK, below, I can see that prices have weakened significantly the past six weeks. Prices have turned lower and broken below the 50-day moving average line and below the 200-day moving average line. The slope of the 50-day line has turned negative and the 200-day line has turned flat from up.
The On-Balance-Volume (OBV) line has been declining the past six weeks telling me that sellers of BLK are more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator turned bearish in February, when it moved below the zero line.
In this weekly Japanese candlestick chart of BLK, below, I see some storm clouds. Prices are trading below the cresting 40-week moving average line. The weekly OBV line shows weakness from November 2021. The candles are pointed lower with no lower shadows or bottom reversal yet. The MACD oscillator is pointed down and close to crossing the zero line for an outright-sell signal.
In this daily Point and Figure chart of BLK, below, I can see a potential downside price target in the $551 area.
In this weekly Point and Figure chart of BLK, below, the software shows a potential price target in the $461 area.
Bottom line strategy: I have no special knowledge about BLK but the charts and indicators are weak and pointed lower. A better buying opportunity could develop in the next few weeks.
