The fast-paced "Lightning Round" segment of Mad Money is a viewer favorite. Lucky callers get to ask host Jim Cramer about companies they are interested in. One caller Wednesday night asked about BlackRock (BLK) : "BlackRock is a buy. That one is good," replied Cramer.
Let's check out the charts of what is probably the world's largest money manager or asset manager.
In this daily bar chart of BLK, below, we can see that prices have been "flirting" with the February highs. Prices plunged dramatically in February and March but recovered very quickly. BLK is above the rising 50-day moving average line and the rising 60-day moving average line. A bullish golden cross can be seen in early June.
The On-Balance-Volume (OBV) line did not decline much in February and March which is amazing, but now the line is up at a new high and is foreshadowing further price gains because of the aggressive buying.
The Moving Average Convergence Divergence (MACD) oscillator declined in June but the two moving averages have been narrowing and we could soon see an upward cross and buy signal.
In this weekly bar chart of BLK, below, we went back four years to show you an "interesting" pattern. If we put a thumb over the price action since February we should be looking at a large base pattern. The neckline is the $580-$590 area and prices are poised to break out over that zone. The weekly OBV line has been rising from late 2018 at the bottom of the pattern and shows just a temporary dip in February and March. The weekly MACD oscillator is in a bullish position above the zero line.
In this Point and Figure chart of BLK, below, we used daily price data. A trade at $572.57 will be an upside breakout and refresh the uptrend. A $672 price target is indicated.
In this weekly Point and Figure chart of BLK, below, we can see a possible longer-term price target of $802.
Bottom line strategy: In full disclosure, I have met CEO Laurence Fink and President Robert Kapito a number of times and find them smart and very down to earth. I have no doubt they have hired a team that can deliver results. The charts look like they too can deliver results. Traders could go long BLK at current levels or on a trade at $572.57 or higher. Risk a close below $520 for now. The $672 area is our first price objective.
