America Movil S.A.B. de C.V. ADR (AMX) made a good rally from a February 2017 low and a correction the past four months. AMX looks like it can turn higher again as we start off the new year. Let's call up the latest charts and indicators and see what kind of service we get.
In this daily bar chart of AMX, below, we can see a rally from around $12.50 in the first quarter of 2017 to an August peak around $19.00. Prices stayed above the rising 50-day moving average line for most of that rally but a pullback in September broke the advance and the 50-day line. There was a brief but unsustainable advance to a new high in October but prices ultimately decline further to a November nadir.
Prices recently rallied above the declining 50-day moving average line and are still above the rising 200-day line. Volume has dried up the past six weeks or so but the On-Balance-Volume (OBV) line has been steady since September and thus telling me that AMX longs have largely held on during the correction since September. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been below the zero line since early October but is close to crossing back above it for an outright go long signal.
In this weekly chart of AMX, below, we can see a large rounded bottom formation. You can call it a saucer bottom if you like. Prices are above the rising 40-week moving average line which is a bullish sign. The daily OBV line was neutral but this weekly OBV line has been rising since late 2016 and suggests many months of buying and accumulation. The 12-week momentum study in the bottom panel shows a rising pattern in recent weeks and could soon turn positive.
In this long-term weekly Point and Figure chart of AMX, below, we can see that prices on this scale are in a down column of O's. A rally to $18 is needed to turn the column positive and a trade at $19.50 is needed for an upside breakout. A longer-term price target of $34.50 is shown.
Bottom line: Aggressive traders could buy some AMX here and add on strength above $18.50 and $19.50. Risk a close below $16.50. The $34-$35 area is our long-term price target.