Bullish Reversal Pattern on Blackstone After Earnings

If you look at the price pattern Blackstone has been forming on its chart during the past few months, you will see a classic reversal pattern. The stock has a consistent resistance level at $11, but it has been forming a series of different support levels.

In early June, Blackstone formed support at $10 -- forming the "left shoulder" of the inverted head-and-shoulders pattern. In early July, the stock dropped to a lower support level of $9 -- forming the "head" of the pattern. And then a few days ago, the stock stopped at the higher, $10 support level once again -- forming the "right shoulder."

Now what we are watching for is the stock to break up and through the "neckline" of the pattern at $11. Once it does, we have a green light to watch Blackstone climb higher.

Analyst Expectations: Oppenheimer, one of the last firms to issue a rating on Blackstone, upgraded the stock from a Perform rating to a Outperform rating and gave the stock a price target of $21.

Technical Analysis: Blackstone has lost 3.63% during the past month and is currently trading above its 20-day moving average but below its 50-day and 200-day moving averages.

Disclosure: Hansen does not own shares of the stocks discussed above. Positions can change without notice.