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Blackstone Group - bouncing to a breakout

A few of my clients have asked for my views on the Blackstone Group and whether there has been any definitive buying signals in the stock lately.

The first point to note, is that the Blackstone Group has been characterised in a bear trend, depicted by the downward trend line marked clearly in the chart below.

Blackstone Group - 6 Dec 2016

click to enlarge image

The trend line indicator was your first signal not to be pinning your ears back and going long the stock over the last few months, however the recent market action suggests that things may finally be about to change.

In the above chart, you can see that Blackstone has made a double bottom low at the $23.30 levels - the first being a 180 degree turn off the April 2016 high and the second being a repeating daily time frame of 77 to 79 days.

We have now seen confirmation of the double bottom with prices traded over the $26 level, and the stock looks like it wants to have a go at breaking through the trend line and moving into the $29.26 to $29.40 level. This would be a natural place to trim some profit on any long positions before looking for a re-entry level if the stock retraces to retest the upperside of the trend line again.

With some positive tailwinds appearing to favour the financial stocks at the moment, this is one certainly worth watching.

Until next time...

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Tuesday, 26 May 2020

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