While many stocks have been in a bear slump in recent months, AGCO (AGCO) has traded sideways since its early October low. Let's look closer at this neutral trend.
The senior equity averages started to decline between May and June 2015, but AGCO did not feel the bear until August-October. The On-Balance-Volume (OBV) line peaked ahead of price (see the chart above) in early July. Prices for AGCO and the OBV line have moved sideways since the October low. The Moving Average Convergence Divergence (MACD) oscillator has moved back and forth around the zero line, mirroring the sideways price action.
Prices have crossed above and below the 50-day moving average a number of times. The slope or direction of the 50-day average has been up and then down, while the slow moving 200-day average has been flat. If AGCO has been under accumulation by forward-looking investors, our indicators are not picking it up yet.
This longer-term chart of AGCO, above, shows that declines and dips into the $45 to $40 area have been bought, but the OBV line turned down in August. Also note that the MACD oscillator peaked in August. Last, the slope of the 40-week moving average is pointed down. AGCO could continue to trade sideways, but the bears may have a slight edge, looking at this longer-term view.