AMG finds buyers at key support level
Affiliated Managers Group Inc. (AMG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
AMG finished the week 3.09% higher at 64.46 after losing $2.21 (-3.31%) today, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 65.37, Affiliated Managers confirmed its breakout through the prior session low after trading up to $1.26 below it intraday.
Daily Candlestick Chart (AMG as at May 22, 2020):
Friday's trading range has been $2.60 (3.9%), that's slightly below the last trading month's daily average range of $3.19. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AMG.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 64.11 earlier during the day, the stock bounced off the key technical support level at 64.13 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on April 28th, AMG gained 3.24% on the following trading day. The share closed back below the 20-day moving average at 65.23 for the first time since May 15th. The market ran into sellers again today around 66.71 for the third trading day in a row after having found sellers at 67.13 in the previous session and at 66.91 two days ago.
AMG shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 67.13 where further buy stops could get activated. As prices are trading close to May's high at 68.61, upside momentum might accelerate should Affiliated Managers mark new highs for the month.
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 419 times, AMG closed higher 57.76% 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 54.42% with an average market move of 0.35%.