Blackstone (BX) reported better-than-anticipated EPS numbers Thursday morning and the stock is higher in early trading.
When we looked at BX on Aug. 9 we wrote that, "The charts and indicators for BX are bullish with a potential $153 price target. Trade BX from the long side risking to $102."
Let's check out the charts again.
In the updated daily bar chart of BX, below, we can see that the shares rallied into a September high and then corrected to the $110 area. Our sop at $102 was not elected so traders should still be long from early August. Sell stops could be raised to $109 now. The shares are trading above the rising 50-day moving average line and above the 200-day line.
The On-Balance-Volume (OBV) line dipped with the price action in September and has turned upwards again this month. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside for a cover shorts buy signal and an outright buy signal is likely today if the indicator crosses the zero line.
In the weekly Japanese candlestick chart of BX, below, we see a positive setup. Prices are in a longer-term uptrend as they trade above the rising 40-week moving average line. There is a lower shadow on the candle for the start of October and the pattern almost qualifies to be a bullish hammer pattern.
The weekly OBV line has been in an uptrend the past three years and that is a strong statement that the price gains are likely to continue. The MACD oscillator is well above the zero line and poised to cross to a new buy signal.
In this daily Point and Figure chart of BX, below, we can see a potential upside price target in the $167 area.
In this weekly close-only Point and Figure chart of BK, below, we used a five-box reversal filter. Here it is projecting a possible target in the $464 area.
Bottom-line strategy: Traders should continue to hold longs recommended in August. Use a stop at $109. Additional purchases of BX could be made today. The $167 area is our new price target. We see $465 possible longer-term.
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