Harvest Some Profits on AGCO

 | Aug 18, 2017 | 2:49 PM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

agco

AGCO Corp. (AGCO) was last reviewed at the end of June 2016, and we liked the long side: "Existing longs with a low cost basis should hold. No position in AGCO? I would look to be a buyer in the coming weeks in the $44 to $42 area, risking a weekly close below $41."

More than a year later, we can look back and see it was pretty good advice as prices did correct and then turn much higher. After two strong legs to the upside, the indicators are wavering a little and a new strategy is necessary.

In this daily bar chart of AGCO, above, we can see how prices have pulled back this month to close below the rising 50-day moving average line. Prices came close to the rising 200-day moving average line earlier today, but they have firmed. The daily On-Balance-Volume (OBV) line has turned lower the past few weeks, signaling more aggressive selling. In the bottom panel, the 12-day momentum study has made lower highs from May to July as prices have made higher highs. These two paths describe a bearish divergence and probably foreshadowed the current price weakness.

In this weekly chart of AGCO, above, you can see prices are still well above the rising 40-week moving average line. The OBV line on this weekly timeframe is still positive, but the Moving Average Convergence Divergence (MACD) oscillator is crossing to the downside above the zero line -- a take-profits sell signal.

In this Point and Figure chart of AGCO, above, we can see the August selloff and a possible downside price target of $56.

Bottom line: AGCO is trying to reverse its weak performance today but it may fail. If prices see renewed selling next week and close below the 200-day moving average line, we could weaken to the Point and Figure target of $56. I would look to nail down some profits on AGCO and see if we get a better buying opportunity in the next three months.

Columnist Conversations

As far as TSLA is concerned, I still have a higher target above the market at the 409 area.  I stated in ...
The TLT setup discussed in my last commentary is a bust. Key support was violated and it violated the recent l...
BBY is getting smoked this mornings(weak forecast).  The stock is off 8% after opening the session with a...

BEST IDEAS

REAL MONEY'S BEST IDEAS

News Breaks

Powered by

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.