Back to top

Image: Bigstock

After Golden Cross, Affiliated Managers Group (AMG)'s Technical Outlook is Bright

Read MoreHide Full Article

Affiliated Managers Group, Inc. (AMG - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, AMG's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."

A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving averages being the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.

Golden crosses have three key stages that investors look out for. It starts with a downtrend in a stock's price that eventually bottoms out, followed by the stock's shorter moving average crossing over its longer moving average and triggering a trend reversal. The final stage is when a stock continues the upward climb to higher prices.

A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.

Over the past four weeks, AMG has gained 24.9%. The company currently sits at a #2 (Buy) on the Zacks Rank, also indicating that the stock could be poised for a breakout.

The bullish case solidifies once investors consider AMG's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 5 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too.

Moving Average Chart for AMG

Investors should think about putting AMG on their watchlist given the ultra-important technical indicator and positive move in earnings estimates.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Affiliated Managers Group, Inc. (AMG) - free report >>

Published in