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BlackRock, Inc. (BLK)

BlackRock stock forecast: buy or sell

Close on Sep 29th, 2020
$554.8 -0.01%
3 months performance
0.03%
Published: September 29th, 2020 - 4.28pm EDT

BlackRock stock outlook

  • BlackRock closed today at $554.80 after scarcely changing a -0.69%.
  • BlackRock, Inc. is a publicly owned investment manager.

Disclaimer:
The opinions written in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this article does not have an understanding of the specific circumstances of the reader, his or her finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are posted for informational reasons only

BlackRock stock charts

Should I buy BlackRock stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is BLK stock a buy?

Currently, BlackRock stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean BLK will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell BlackRock stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Similarly to when we have to buy shares, deciding when is appropiate to sell is not a random decision, and we must use our own trading strategy. We like very simple setups to guide us on when is a good moment to sell our shares. Be aware that these setups are not intended for shorting BLK stock

As a rule of thumb, you must never mantain a trading operation that generates losses greater than those expected by the time of the buy. The moment to sell shares must always be ruled by the stop-loss (automatic or manual)

Is it time to sell BlackRock stock?

In the current situation of BlackRock there is not any eligible sell setup, so BlackRock stock holders with operations in green can keep their positions

Analysts' recommendations to buy or sell BlackRock stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days we couldn't find any rating for BlackRock

Technical analysis

SMAs overview

A favorite tool of many traders are the moving averages, that easily show trend direction. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

BLK SMAs chart

Supports and resistances

Technical analysts use supports and resistances as a way to identify price points in the stock price action that tend to work as obstacles, preventing the price of shares to move up or down. A support level is a level where the price tends to stop as it falls. This means that the price is more likely to "rebound" this level rather than break through it. However, if the price breaks down this level, it is likely to continue falling until finding another support level. In contrast, resistances are where the price tends to find resistance as it rises. In the same way, the price is more liable to "rebound" at this level, and if it finally breaks this level, the price will rise easily until it meets the next resistance

The current resistance levels are:

  • R1: $560.63 (1.05% above)
  • R2: $564.19 (1.69% above)
  • R3: $565.28 (1.89% above)
  • The current support levels are:

  • S1: $551.50 (-0.59% below)
  • S2: $539.76 (-2.71% below)
  • S3: $531.39 (-4.22% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-established technical strategy created by John Bollinger. It consists of 3 lines that are drawn superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    BLK RSI chart

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that measures price fluctuations to spot when the price of a share or financial asset is overbought or oversold. Like other oscillation indicators, the RSI fluctuates between 0% and 100%. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in the late 1970s

    When the Relative Strength Indicator (RSI) stays for so long below 70 and above 30, without signaling moments of overbought and oversold, the indicator becomes of little use, and we find ourselves in one of these situations.

    BLK RSI chart

    Earnings and financials

    In mid-July, BlackRock hosted the investors call and posted the 2nd-quarter report. BlackRock beat Wall St estimates and presented earnings of %s a share of $7.85, that is a 12.3% surprise compared to the initial forecasts of $6.99. Reported revenues were $3.6 billion compared to estimates of $3.6 billion.

    Same quarter one year ago, reported EPS was $6.41, so current EPS means an improvement of 22.46%. Looking at revenues, figures barely changed compared to $3.5B same quarter a year ago.

    BlackRock will host the Q3 earnings call on Tuesday next week. Expected earnings of %s a share for this quarter is $7.64. If you own or you are thinking of buying BlackRock shares, be aware that the earnings reporting day usually has a higher than usual volatility, and price can jump up or down with very low liquidity and not respecting your buy or stop-loss orders. You can uncover more information about the earnings conference call and the earnings reports on the Investor Relations section of its website: http://www.blackrock.com.

    BLK revenues and profits chart