AMG stuck within tight trading range
Affiliated Managers Group Inc. (AMG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
AMG finished the month -7.74% lower at 68.79 after edging higher $0.37 (0.54%) today, slightly underperforming the S&P 500 (0.77%). Trading up to $1.03 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 68.71, the stock confirmed its breakout through the prior session high after trading up to $0.19 above it intraday.
Daily Candlestick Chart (AMG as at Jul 31, 2020):
Friday's trading range has been $1.55 (2.27%), that's below the last trading month's daily average range of $2.32. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AMG. Prices continued to consolidate within a tight trading range between 67.15 and 70.09 where it has been caught now for the last three trading days.
Even with a weak opening Affiliated Managers managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on June 30th, AMG actually lost -4.44% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the Hammer.
Prices are trading close to the key technical support level at 67.13 (S1). Prices are trading close to the key technical resistance level at 70.18 (R1). After having been unable to move lower than 67.15 in the prior session, the market found buyers again around the same price level today at 67.35.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 71.27.
While AMG is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Selling might accelerate should prices move below the close-by swing low at 67.15 where further sell stops could get activated. Further selling might move prices lower should the market test June's nearby low at 66.43.
Among the 10 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 58 times, AMG closed higher 55.17% of the time on the next trading day after the market condition occurred.