Private equity firm Apollo Global Management (APO) was rated a new fundamental buy at Citigroup (C) with an $80 price target. Let's review the charts and indicators.
In this daily bar chart of APO, below, I can see that prices are higher than they were 12 months ago but it has been a difficult trip. Prices have made a number of deep corrections the past year. Prices made a sharp pullback in March to break below the rising 200-day moving average line. Another break of the line is seen in early May.
The daily On-Balance-Volume (OBV) line shows a different story and has remained very steady in the face of several corrections. The trend-following Moving Average Convergence Divergence (MACD) oscillator is just slightly below the zero line.
In this weekly Japanese candlestick chart of APO, below, I can see some lower shadows in March and May telling me that traders are rejecting the lows. The 40-week moving average line has a positive slope.
The OBV line has been steady since last May. The MACD oscillator has been correcting lower but is still above the zero line.
In this daily Point and Figure chart of APO, below, I can see an upside price target in the $78 area - close to the fundamental price target from Citigroup. A trade at $66.08 should refresh the uptrend.
In this weekly Point and Figure chart of APO, below, I can see a downside price target in the $51 area. A weekly trade at $66.08 or higher should generate an upside price target.
Bottom line strategy: Traders could go long APO on strength above $66.08. The $78 area is my first price target. Risk to $60.
