First up is asset management giant BlackRock ( BLK). It shouldn't be surprising that BlackRock has posted impressive performance so far in 2013; as the world's largest asset manager, BLK is basically a leveraged bet on stock prices. But despite a 40% rally since the calendar flipped over to January, the setup in shares points to more upside into the fourth quarter.
That's because BlackRock is currently forming an ascending triangle pattern, a bullish formation that's set up by a horizontal resistance level above shares -- in this case at $290 -- and rising support to the downside. Basically, as BLK bounces between those two technical price levels, it's getting squeezed closer and closer to a breakout above that $290 price ceiling. When that happens, it's time to be a buyer.Momentum, measured by 14-day RSI, adds some extra evidence in favor of a breakout. That's because the momentum gauge has been making higher lows over the course of the pattern. Since momentum is a leading indicator of price action, it bodes well for buyers right now.
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