After a recovery rally from February to the end of April, Affiliated Managers Group (AMG) has rolled over and is headed lower.
New 52-week lows in the weeks ahead would not surprise me, as our favorite indicators are bearish.
In this daily chart of AMG, above, we can see that prices briefly rallied above the 50-day and 200-day averages, but slipped back below them in June. A mid-June bounce in the price of AMG stopped at the underside of the declining 200-day line.
The On-Balance-Volume line showed some improvement in March through May, but turned down again in June, telling us that sellers had become more aggressive. The 12-day momentum study is not showing us a bullish divergence, as the price weakness and the momentum readings have been moving together.
In this five-year weekly chart of AMG, above, we can see the steep decline from the 2015 peak. Prices made a 50% recovery in 2016 before turning south again. AMG is below the declining 40-week moving average line. The weekly OBV line peaked in the early part of 2015 and just made a new low for the move down, foreshadowing additional price weakness.
The weekly Moving Average Convergence Divergence (MACD) oscillator just crossed to a new sell signal. AMG looks like it will retest and probably break its February low around $120. A break of the February low opens up $100 as the next downside support and target.