Shares of BlackRock (BLK) were trading lower in the premarket Friday on the heels of an EPS miss and "in-line" revenue numbers, but they actually opened higher.
In our April 12 review of BLK we recommended "... that traders continue to avoid the long side of BLK. We could see a much better buying opportunity later in the year."
The share price of BLK is lower than it was in mid-April so we have steered you in the right direction. Let's check the charts and indicators again.
In the daily bar chart of BLK, below, we can see lows made in May and June and perhaps a new low could be made this Friday. BLK is trading below the declining 50-day moving average line and below the declining 200-day line.
The On-Balance-Volume (OBV) line made a low in late April/early May and improved into early June before some recent softness. The trading volume has dried up in the past few weeks and that can be a positive sign as traders are not pressing the downside.
The 12-day price momentum study shows higher lows from late April even though prices have made lower lows. This difference is a bullish divergence and tells us that the pace of the decline has slowed. Bullish divergences can at times foreshadow rallies.