BlackRock Is About to Explode – Here’s Why I’m Going Long!📊 BlackRock (BLK) – Bullish Setup Ahead of Earnings! 📊
BlackRock ( NYSE: BLK) is setting up for a potential bullish move as it approaches tomorrow's earnings report (before market open). After a healthy pullback, the stock has bounced off a long-term trendline, showing technical signs of a reversal. Here's why I'm taking this trade and what I'm watching going forward:
💼 Trade Setup:
🔹 Entry Price: $964 (current price)
🎯 Take Profit 1: $1,000
🎯 Take Profit 2: $1,050
🎯 Take Profit 3: $1,100
🛡️ Stop Loss: $915 (just below trendline support)
This setup offers a solid risk/reward ratio, with potential upside of up to 14% while keeping the downside risk limited to 5%. The levels are based on both technical resistance zones and previous highs that could act as targets.
📈 Why Am I Bullish on BlackRock?
1️⃣ Technical Reversal
BlackRock has bounced off its long-term trendline, which has been acting as support since mid-2023. The stock is now trading near daily RSI oversold levels, with the Stochastic oscillator crossing upward, both of which point to bullish momentum.
The price action suggests buyers are stepping in, especially ahead of the earnings report. A move above $970-$975 could confirm the reversal and push the price toward my first target of $1,000.
2️⃣ Earnings Catalyst
BlackRock is due to release its Q4 2024 earnings tomorrow before the market opens. Historically, the company has a strong track record of beating estimates. Positive surprises tend to trigger sharp price moves, as asset managers like BlackRock benefit from market recovery and ETF inflows.
Given the recent rally in global markets, there's a good chance BlackRock could report higher-than-expected fee income from its $9.4 trillion in assets under management (AUM).
3️⃣ ETF & Passive Investing Growth
BlackRock’s iShares brand dominates the ETF market, capturing billions in inflows every month. ETFs have been gaining popularity globally, and BlackRock is perfectly positioned to benefit from this trend.
With markets stabilizing and investors returning to risk assets, ETF providers like BlackRock are first in line to benefit.
4️⃣ Fundamentally Strong Company
BlackRock is not just about ETFs. It also generates recurring revenue from its Aladdin platform, a risk management system used by many of the world’s largest institutions. This tech-driven revenue diversifies BlackRock’s business model and makes it more resilient to market downturns.
The company is also shareholder-friendly, with a strong dividend track record and consistent buybacks that reduce the float and boost EPS.
💬 Are you trading BlackRock ahead of earnings? Share your thoughts below! 👇
