BlackRock Science(BSTZ) Shares Soar 1.20% on Bullish Technical Signals

BlackRock Science(BSTZ) shares surged 1.20% today, marking the third consecutive day of gains, with a cumulative increase of 6.44% over the past three days. The stock price reached its highest level since March 2025, with an intraday gain of 1.47%.

The strategy of buying BSTZ shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a maximum drawdown and relatively stable annualized returns.

Maximum Drawdown: The maximum drawdown during the backtested period was -8.13%, which occurred on May 15, 2025, following the ex-dividend date. This is a significant risk consideration, as it represents the peak loss an investor could experience.

Annualized Returns: The annualized return for this strategy was approximately 4.5% over the past 5 years. While this is not a high yield, it provides a consistent return, which is attractive for income-focused investors.

Comparison with Benchmark: It's important to compare this strategy's returns with a benchmark. Assuming a benchmark of the S&P 500, which provided a CAGR of 9.5% over the same period, the BSTZ strategy outperformed the benchmark in terms of drawdown but underperformed in terms of average returns.

In conclusion, while the strategy of buying BSTZ after a recent high and holding for 1 week provided a stable return with a reasonable drawdown, it may not have been competitive with a broader market benchmark. Investors should consider their risk tolerance and investment goals when evaluating this strategy.

The recent upward trend in BlackRock Science's stock price can be attributed to positive short-term technical signals. The stock has shown buy signals from both short and long-term moving averages, indicating a bullish outlook. This positive momentum has been supported by an increase in trading volume, which is typically seen as a strong indicator of market interest and confidence.

Despite the recent gains, it is important to note that the stock is currently overbought on the RSI14, which suggests that there may be some short-term resistance. However, the overall technical indicators remain positive, and the stock is seen as holding a buying opportunity due to these short-term signals. Investors should be aware that while the short-term outlook is favorable, the stock is in a falling long-term trend, which could pose a risk to long-term investments.