AMG closes above its opening price after recovering from early selling pressure
Affiliated Managers Group Inc. (AMG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
AMG finished the week 1.69% higher at 82.90 after gaining $0.37 (0.45%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.74 lower after the open, Affiliated Managers managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AMG as at Feb 14, 2020):
Friday's trading range has been $0.99 (1.19%), that's far below the last trading month's daily average range of $2.02. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AMG.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, three candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern, one bearish pattern, the Northern Doji and one neutral pattern, the Doji. The last time a Doji showed up on Wednesday, AMG lost -1.41% on the following trading day.
The market managed to close back above the 20-day moving average at 82.51. Prices are trading close to the key technical resistance level at 83.88 (R1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 84.84 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 81.71 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for Affiliated Managers. Out of 60 times, AMG closed higher 61.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.00% with an average market move of 1.19%.