AMG closes above its opening price after recovering from early selling pressure
Affiliated Managers Group Inc. (AMG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AMG finished Thursday at 56.84 gaining $5.49 (10.69%) on low volume, strongly outperforming the S&P 500 (6.24%). Trading up to $2.98 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Wednesday's high at 54.88, Affiliated Managers confirmed its breakout through the previous session high after trading up to $2.74 above it intraday.
Daily Candlestick Chart (AMG as at Mar 26, 2020):
Thursday's trading range has been $8.57 (16.47%), that's far above the last trading month's daily average range of $5.91. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AMG.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 49.05 earlier during the day, the share bounced off the key technical support level at 50.25 (S1). The failure to close below the support could increase that levels importance as support going forward. Prices are trading close to the key technical resistance level at 61.74 (R1). After having been unable to move lower than 49.06 in the prior session, the market found buyers again around the same price level today at 49.05. The last time this happened on March 19th, AMG actually lost -11.86% on the following trading day.
Though AMG is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Affiliated Managers. Out of 414 times, AMG closed higher 57.73% 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 54.35% with an average market move of 0.30%.