Today, we will discuss BlackRock Inc. (BLK), a recent newcomer to the favored zone of the SIA S&P 100 Index Report. Founded in 1988, BlackRock is an American multinational investment company and the world's largest asset manager, with $10 trillion in assets under management. BlackRock's shares have fluctuated in and out of the favored zone over the past several years, primarily underperforming, as indicated by the black squares in the attached SIA Relative Strength (RS) position chart. This is in stark contrast to the challenging period during COVID-19, when BlackRock significantly benefited from the largest quantitative easing since the Great Depression. This dynamic likely reveals more about the global economy than we might currently perceive, and it will be interesting to reflect on it as we approach 2025. The fact that the largest asset manager in the world has now emerged as an outperforming stock on the S&P 100 Index is compelling. Additionally, five other banks and asset managers occupy top positions in the top quartile. Looking beyond the U.S., regional banks, mid-sized brokerages, and financial institutions worldwideâ even in countries like Argentina, Turkey, Australia, and Singaporeâare also showing strong stock performances. Notably, BlackRock, now positioned at #26, has been one of the top monthly relative strength performers, rising 13 spots with an 8.52% return for the month and an impressive 19.35% over the past quarter. Other notable relative strength gainers include financial stocks such as PayPal (PYPL), MetLife (MET), and Berkshire Hathaway (BRK.B), along with General Motors (GM), AT&T (T), and Verizon (VZ), all serving as significant contributors to the economy.
Turning to the point and figure chart of BlackRock, we have highlighted the top and bottom zones of the consolidation range established after the last run-up in the share price following the early 2020 plummet. BlackRock's shares rose from just below $300 to over $850 in just 18 months. Since then, the stock has primarily moved sideways for the past three years, struggling repeatedly with the $740 level and more recently the $900 levelâboth of which are now acting as support. It appears that BLK shares have now broken higher, with support identified at $867.67, additional support at $817.62, and further support at $726.03. Based on a vertical count from recent moves and the horizontal consolidation, we can establish resistance at $1,036.95 (aligning with the whole number of $1,000) and at $1,167.77. With a SMAX score of 10 out of 10âa near-term indicator comparing an asset against various asset classesâBlackRock is demonstrating strong short-term performance against other investment alternatives, including commodities, currencies, bonds, and both international and domestic equities.
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