Affiliated Managers Group has hopefully completed a 4 year long correction, It has not been rewarding to its long term holders but there is signs of life once again. Buy volume and technical indicator point towards further gains and this stock could easily double.
After setting a new monthly high close of $200.43 on December 8th (note the negative divergence on the 10-day RSI), AMG put in four lower closes, setting up a potential "4x4 Retracement" signal on Friday, December 15th. AMG did not disappoint, closing up 2.3% on 2x average volume on Friday - signalling a trade entry for Monday.
Watch the two green Lines on the RSI! If it breaks that top green line=====> BUY BUY BUY imo.
Please provide thoughts and feed back if you have any! Thanks guys!
-Quick note: anyone have any thoughts on my trend lines for the chart itself????
Wait for price action to break the green resistance line before entry. Rsi needs to break above ~61.9, look at the red line on the RSI.
Consolidation around the area it is at right now seems to be around a Fibonacci level if we look at the last major run. Sorry I do not know how to draw Fib retracements on chart otherwise I would.
Would like to see...
There are 3 strong longing signals gor entering the position:
1- double bottom (confirmed by the brealout of neck)
2-pennant with oncoming breakout
3-volumes during formation of double bottom support the idea of trend reversal.
Buy 147.40-148.00 (the breakout of pennant's resistance level)
Stop-loss 137.00 (7% of allowed risk; if it's possible move stop-loss to...
AMG is on a uptrend. As we can see the Connors rsi iwas below 30 yesterday, today it is breaking up. with a long inferior shadow. This setup had 70% of Win probabiltiy in the last 3 years in this stock. with a 5% target profit and 5% stop loss target. The average duration of the trades was 12 days.
I am starting a bull put spread with 195 / 210.