A Chart Pattern Has Emerged That Indicates More Gains Are to Come for This Private Equity Giant

Blackstone Group (BX) has just completed a textbook “bull flag” formation, a technical setup that often signals the potential for a powerful upward move. With momentum indicators strengthening, relative strength improving, and moving averages lining up in a bullish fashion, the stock looks poised to continue its primary uptrend in the weeks ahead.

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Our attention first turned to Blackstone back in July when the stock carved out an inverted head-and-shoulders base, a classic reversal pattern. That move was quickly validated as BX reclaimed its 200-day moving average, confirming a clear rotation back into bullish territory.

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From there, however, the stock slipped into a corrective phase. Starting in mid-summer, BX formed a downward-sloping channel defined by lower highs and lower lows. This consolidation created the recognizable bull flag pattern.

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For such a pattern to be considered complete, the price must break above the upper boundary of the flag. That confirmation arrived this week when BX surged past $180 a level it hadn’t touched since January.

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With the breakout, the technical structure has shifted firmly into bullish alignment. The Relative Strength Index (RSI) now sits comfortably above 60, reflecting strong momentum behind the move.

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Looking ahead, the next notable resistance level appears near the prior all-time high around $200, set in November. That level could serve as the next significant target if the rally continues.

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Volume dynamics will be an important confirmation factor as this setup unfolds. Ideally, we’d like to see trading activity expand through September, signaling robust buying demand.

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The accumulation-distribution line has already been trending higher, a positive sign, though the Chaikin Money Flow remains just below zero. A decisive move above that threshold, coupled with continued strength in accumulation-distribution, would provide compelling evidence of institutional support behind the breakout.

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Perhaps the most encouraging signal comes from the longer-term perspective. On the monthly chart, Blackstone has been in a secular uptrend since the market bottomed in 2009. While the stock has experienced notable drawdowns along the way, each has found support above the 60-month moving average, preserving the broader bullish structure.

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Another key indicator to watch is the monthly Percentage Price Oscillator (PPO). The PPO is on the verge of a bullish crossover a technical event that, in the past, has preceded long stretches of sustained gains. Historical examples of this crossover, highlighted by vertical markers on the chart, have frequently aligned with extended uptrend phases.

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Taken together, these technical conditions suggest that Blackstone may be entering a fresh leg higher. The breakout from the bull flag pattern, combined with supportive momentum readings, constructive volume trends, and a strong secular backdrop, all point to the potential for meaningful upside.

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For investors and traders alike, the key takeaway is that BX is not just showing short-term strength but is also aligning with a much larger, long-term bullish framework. If the stock manages to build on its breakout with higher volume and clears the $200 resistance level, it could open the door to significant gains well beyond prior highs.

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As always, it’s worth remembering that no technical setup guarantees a specific outcome, and market conditions can shift quickly. But with Blackstone’s chart sending a series of bullish signals across multiple timeframes, the odds appear tilted toward continued strength in the weeks and months ahead.

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