In the fast-paced, almost dizzying, Lightning Round of Jim Cramer's Mad Money program on Monday night, he said this about Blackstone Group (BX) : "You're a little late to this one. I'd hold off on this one." Yes, BX has rallied smartly from late December but I think there is more on the upside. Let's review the latest charts and indicators.
In this daily bar chart of BX, below, we can see heavy volume in December as prices reversed from a downtrend to an uptrend. Prices and the On-Balance-Volume (OBV) line made a "V"-like bottom. BX is above the rising 50-day moving average line and the bullish 200-day line.
In April you can see that the 50-day line crossed above the 200-day line for what is commonly called a "golden cross" or a moving average crossover buy signal.
The trend-following Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in January for a buy signal. The two moving averages that make up the MACD oscillator have turned up again for another buy signal.
In this weekly bar chart of BX, below, we can see an advance the past three years. Prices are currently above the rising 40-week moving average line. The weekly OBV line bottomed in December and the MACD oscillator is in a bullish configuration.
In this Point and Figure chart of BX, below, we can see an upside price target of $54.
Bottom line strategy: BX has made a significant rise the past five months but our Point and Figure chart suggests that further gains are possible. Risking below $38, traders could buy BX near $42 looking for potential gains to around $54.
