Stock of the day: Blackrock

Tuesday brings a cooling down of emotions on the market and a moderate bounce on global indices. Right on time for the SP500 which is currently on a key horizontal support (3620 points).

Interestingly, another asset we’re analysing today is on a key horizontal support! Blackrock ended its Monday slightly above the 580 USD support (blue) and this area has been an absolute bullish stronghold since mid-May. Sellers were trying to breach that level four times already, without a success.

As long as the price stays above 580 USD, buyers can think of a great risk to reward ratio long trade. Unfortunately, the probability of success in such a down trend is low, but if they succeed, the payout can be decent.

On the other hand, a breakout of this key support would be an invitation to sell and would open a way towards a new, mid-term bearish wave.