Friday, September 8th
Happy Friday! The indexes closed mixed this afternoon as we ride into an uncertain weekend weather wise down in the Gulf Coast. The market will be interesting come Monday morning as folks see what kind of economic impact Hurricane Irma will carry with it. Our best thoughts and prayers also go out to all of those who will be impacted by the storm.
As far as signals go, we are going to look at another default strategy to round out the week, this time the Reversal Strategy signal on BlackRock.
BlackRock has bounced around support near $410 for several days now, but yesterday’s quick bounce is telling for a few reasons. For one, reversal moves often follow bars like yesterdays because they show that investors did not want the price to close on or below support, meaning they think the value should be higher. How do you make sure a stock goes higher? By buying of course. This type of move often leads to a snapback reversal. Next, this is the third time that support has been tested in the recent past. Every time support has been tested, it held strong which gives more credence to the reversal setup. And lastly, BLK is oversold, putting it in a prime-time reversal location.
If BLK can rally and push up and through the several moving averages pictured above, this reversal could yield a move that completes back near highs in the $430’s.
The Reversal Strategy is a default strategy that comes with every copy of OmniTrader. That’s great news for everyone since it requires no extra plug-ins or modules to use. Just fire up OT, turn on the Reversal, Breakout and Trending default strategies on and see how awesome our most basic strategies are. To learn more about them, you can check out OmniTrader 2017 here.
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