4 Trade Ideas for Blackrock: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Blackrock, $BLK, comes into the week approaching resistance. The chart shows two nested Cup and Handle formations from the series of higher lows with a target upon trigger of 837 on the smaller and 1020 on the larger. The RSI is rising in the bullish zone with the MACD flat but positive. The Bollinger Bands® have shifted higher to allow a move up.

There is resistance at 762.50 and 784 then 800 and 820 before 830 and a gap to fill to 864 then 888 and 910. Support lower comes at 750 and 730. Short interest is low at 1.8%. The stock pays a dividend with an annual yield of 2.63% and will trade ex-dividend beginning March 6th. The company is expected to report earnings next on April 11th.

The February options chain shows biggest open interest at the 700 then 750 strike on the put side and spread at 740, 750 and 800 on the call side. The March chain has smaller open interest. The April chain has open interest spread on the put side from 760 down to 700 and focused on the call side from 80 to 850 outside of some size at 720.

Blackrock, Ticker: $BLK

Trade Idea 1: Buy the stock on a move over 762.50 with a stop at 730.

Trade Idea 2: Buy the stock on a move over 762.50 and add a February 730/700 Put Spread ($5.60) while selling the February 800 Call ($4.90).

Trade Idea 3: Buy the February/April 800 Call Calendar ($17.30) while selling the March 700 Put ($9.10).

Trade Idea 4: Buy the April 700/770/810 Call Spread Risk Reversal (70 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with just 2 trading days left in January, saw equity markets showing strength as they move higher. And with the Santa Claus Rally and 1st Five Days of January both positive is seems a lock that there will also be a Positive January to have all 3 indicators align to set up a positive performance indication for all of 2023.

Elsewhere look for Gold to continue its uptrend while Crude Oil consolidates in a tight range. The US Dollar Index continues to drift to the downside while US Treasuries consolidate the bounce in their downtrend. The Shanghai Composite comes back from holiday looking to continue the move higher while Emerging Markets continue to enjoy an uptrend.

The Volatility Index looks to remain normal and stable making the path easier for equity markets to the upside. Their charts look strong on both timeframes. On the shorter timeframe both the QQQ and IWM are making higher highs, with the SPY and QQQ now over their respective 200 day SMA’s. On the longer timeframe the SPY and QQQ are also over falling trend resistance that has held them all of 2022. All are starting to look a lot more bullish. Use this information as you prepare for the coming week and trad’em well.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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