A New Star if It Stays Healthy

Blackline Inc., a smaller cap software play, has never really been thought of as am emerging leader. On the second chart, below, of the monthly timeframe for BL, you can plainly see why--The stock went sideways for the most part while many software peers exploded in market cap the last few years. 

However, BL is flashing signs of wanting to assert itself as a growth leader, particularly in its niche of accounting software for businesses. 

On the daily chart, first below, it is rather impressive to see such an overlooked name act so well the last few weeks in contrast to many other software names which got hit. Indeed, price did not so much as lose its 20-day simple moving average (orange line), which has to place it in the very elite echelon of stocks in February. 

Sure, the likes of TEAM and ZM have also been acting remarkably well. But those two names especially have caught plenty of buzz from traders whereas BL has not. 

In particular, note the volume pattern for BL on that first daily chart. Buyers have supported this thing throughout 2020. And with the resilience over the last few weeks in the face of some sharp broad market drops, I expect that to continue to be the case going forward as a potential new star breaks higher from a multi-year sideways consolidation.