Blink Charging Co (NASDAQ: BLNK) seems to be getting ready for a price bump as per the latest charts. The company provides electric vehicle (EV) charging equipment and networked EV charging services in the United States.
Bullish Move – Chart Indications
#1 Falling Wedge Breakout: As you can see from the daily chart, the stock was forming a falling wedge pattern during the past several months. This is marked as pink color lines. The stock had recently broken out of the falling wedge pattern after taking support at the bottom of the wedge. A falling wedge is a bullish pattern and a breakout from it implies that the stock may move higher in the short term.
BLNK – Daily Chart
#2 Price above MAs: The price is currently above both the short-term moving average of 50-day SMA and the longer-term moving average of 200-day SMA. This is a possible bullish sign.
#3 Bullish Aroon: The value of Aroon Up (orange line) is above 70 while Aroon Down (blue line) is below 30 in the daily chart. This indicates possible bullishness.
#4 Bullish MACD: The MACD (light blue color) is currently above the MACD signal line (orange color), indicating possible bullishness.
#5 Bullish ADX and DI: The ADX indicator shows bullishness because (+DI) is greater than (-DI), and the ADX line has started to move up from below both (+DI) and (-DI).
#6 Pennant Pattern Breakout: As seen from the weekly chart below, the stock was in a strong uptrend after which it started consolidating and was in a narrowing range. This is a classic pennant pattern and is marked in the chart below in purple color. Currently, the stock has broken out of the pennant pattern. A pennant is a continuation pattern. Whenever a stock breaks out of the pennant pattern, it typically continues its previous trend (uptrend in this case).
BLNK – Weekly Chart
#7 MACD above Signal Line: The weekly chart also shows that the MACD (light blue color) is currently above the MACD signal line (orange color). This typically indicates a bullish setup.
Recommended Trade (based on the charts)
Buy Levels: If you want to get in on this trade, the ideal buy level for BLNK is above the price of around $40.50.
TP: Our target prices are $46 and $52 in the next 4-6 months.
SL: To limit risk, place a stop loss below $37. Note that the stop loss is on a closing basis.
Our target potential upside is 14% to 28% in the next 4-6 months.
For a risk of $3.50, our first target reward is $5.50 and the second target reward is $11.50. This is a nearly 1:2 and 1:3 risk-reward trade.
In other words, this trade offers 2x to 3x more potential upside than downside.
Risks to Consider
The stock may reverse its overall trend if it breaks down from the falling wedge pattern with high volume. The sell-off of the stock could also be triggered in case of any negative news, overall weakness in the market, or any regulatory changes in the sector.
Happy Trading!
— Tara
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