Ametek (AME) has had a bumpy ride the past 12 months and I cannot say from a technical viewpoint that the ride is going to be any smoother right away. This morning, Real Money's James Gentile discussed Ametek on a fundamental basis.
In this daily chart of AME, above, we can see a number of rally failures last year above the $56 level. Prices tumbled lower in December and are below the 50-day and 200-day moving average lines. There was a turnaround in February and prices rallied back to their breakdown point and overhead resistance. That strength couldn't hold, however, and we see a gap lower in late April.
The On-Balance-Volume (OBV) line has been pointed lower since the beginning of December telling us that sellers have been more aggressive, even when AME staged a price recovery. On the plus side, the equal lows in May and June actually created a bullish divergence with the momentum study, which made higher lows. This is not the strongest divergence set-up but it is still bullish.
In this weekly chart of AME we can see that prices are below the declining 40-week moving average. The OBV line is neutral on this time frame. Just looking at the chart we can see resistance in the $52-$57 area and some minor support in the $44-$42 area below the market.
At this market juncture we could see AME get carried higher with the general market but without a more established base we are likely to see AME retest the $44 area before too long.