AMG pushes through key technical resistance level
Affiliated Managers Group Inc. (AMG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AMG ended the month 11.92% higher at 74.56 after gaining $2.21 (3.05%) today, strongly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 72.93, the share confirmed its breakout through the prior session high after trading up to $2.11 above it intraday.
Daily Candlestick Chart (AMG as at Jun 30, 2020):
Tuesday's trading range has been $3.11 (4.32%), that's slightly below the last trading month's daily average range of $3.15. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AMG. Prices continued to consolidate within a tight trading range between 71.13 and 75.04 where it has been caught now for the whole last trading week.
In spite of a weak opening the market managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 9th, AMG lost -5.27% on the following trading day.
Buyers managed to take out the key technical resistance level at 73.32 (now S1), which is likely to act as support going forward. After spiking up to 75.04 during the day, Affiliated Managers found resistance at the 20-day moving average at 75.00. After having been unable to move lower than 71.61 in the prior session, the stock found buyers again around the same price level today at 71.93.
AMG shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Engulfing Candle" stand out. Its common bullish interpretation has been confirmed for Affiliated Managers. Out of 57 times, AMG closed higher 56.14% of the time on the next trading day after the market condition occurred.