The Blackstone Group LP (BX) Looking To Gain Traction: What the Technicals Reveal

The EU will unveil proposals for a digital tax on US tech giants on Wednesday, reported France 24. The special tax is the latest measure by the 28-nation European Union to levy fees on Silicon Valley giants and could further inflame a trade row pitting the EU against US President Donald Trump. 

As the proposed digital tax would be applied on the basis and geography of digital users, Facebook (FB) would face levies, along with Alphabet’s Google (GOOGL), and Amazon (AMZN), among others. Companies with annual revenue of less than $924 million may not face the new fees. EU Economics Affairs Commissioner Pierre Moscovici will present proposals aimed at recovering billions of euros from mainly US multinationals that shift earnings around Europe to pay lower tax rates. 

The new tax has been championed by French President Emmanuel Macron and will be discussed over dinner at an EU leaders summit on Thursday. The unprecedented tech-tax follows major anti-trust decisions by the EU that have set back Apple, Google and Amazon.

After a recent look, we have noticed that the Chaikin Oscillator is under zero for The Blackstone Group LP (BX). Traders may be paying close attention to the stock and looking out for possible bearish momentum.

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The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to detect general trends as well as finding divergences and failure swings. The 14-day RSI is presently standing at 71.85, the 7-day is 69.59, and the 3-day is resting at 63.17.

We can also take a look at the Average Directional Index or ADX of The Blackstone Group LP (BX). The ADX is used to measure trend strength. ADX calculations are made based on the moving average price range expansion over a specified amount of time. ADX is charted as a line with values ranging from 0 to 100. The indicator is non-directional meaning that it gauges trend strength whether the stock price is trending higher or lower. The 14-day ADX sits at 43.13. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend.

Interested investors may be watching the Williams Percent Range or Williams %R. Williams %R is a popular technical indicator created by Larry Williams to help identify overbought and oversold situations. Investors will commonly use Williams %R in conjunction with other trend indicators to help spot possible stock turning points. The Blackstone Group LP (BX)’s Williams Percent Range or 14 day Williams %R currently sits at -12.64. In general, if the indicator goes above -20, the stock may be considered overbought. Alternately, if the indicator goes below -80, this may point to the stock being oversold.

The Blackstone Group LP (BX) currently has a 14-day Commodity Channel Index (CCI) of 45.00. Active investors may choose to use this technical indicator as a stock evaluation tool. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal.

Moving averages can help spot trends and price reversals. They may also be used to help find support or resistance levels. Moving averages are considered to be lagging indicators meaning that they confirm trends. A certain stock may be considered to be on an uptrend if trading above a moving average and the average is sloping upward. On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward. Shares of The Blackstone Group LP (BX) have a 7-day moving average of 39.97.

The stock market can be influenced by many different factors such as news, politics, earnings reports, or even company rumors. Often times the market may not react as expected to certain events. This may cause the investor to become frustrated at times. Sometimes certain market moves may seem to go against prevailing logic. This is why it can be extremely hard to predict near-term moves with any certainty. Taking a big picture look at the financial markets may help offer a clearer picture of how all the different aspects contribute to market movements. Figuring out why a certain move happened may help shed some light when the same scenario arises again in the future.