The chart of AGCO (AGCO) has made a quick turnaround.
In this chart of AGCO, above, we can see a small double-top formation around $58 followed by a steep decline. Prices rebased in September and October around the $44-$42 area. AGCO popped back over the declining 50-day moving average yesterday. In the lower panels, we can see that the On-Balance-Volume (OBV) line is now moving sideways. In the lower panel there is a bullish divergence in September and October between the lower prices for AGCO and higher momentum readings.
In the longer-term chart, above, we can see a much bigger double-bottom pattern with the first low in the $45-$40 area in the fourth quarter of 2014. The second dip of this pattern was just made at a slightly higher low. The trend-following Moving Average Convergence Divergence oscillator is narrowing and could generate a crossover signal soon.
After yesterday's sharp rally, traders could wait and look to buy a pullback in AGCO towards $46, and then use a sell-stop below $43.