To manage risk, we recommend tightening stop-loss levels in Halozyme Therapeutics (HALO) and Life Storage (LSI) to $40.96 and $143.90, respectively.
In our search for stocks that look well-positioned to take advantage of an oversold bounce, we found Affiliated Managers Group (AMG):
AMG has seen its intermediate-term gauges turn higher after multiple successful tests of long-term support, which is defined by the weekly cloud model (shaded area on the chart). This suggests a turnaround phase is underway, providing a bullish framework.
From a short-term perspective, AMG is reacting positively to oversold “buy” signals from the DeMARK Indicators® and the daily stochastics, such that it has regained short-term momentum per the daily MACD indicator, supporting upside follow-through in the coming days-to-weeks.
An upside target can be gauged by a 61.8% Fibonacci retracement level residing near the top of the weekly cloud (~$165). A stop-loss can be placed below the most recent low (~$130) in order to avoid the risk associated with a breakdown.
Affiliated Managers Group (AMG, $140.03)
Target: $165
Stop-Loss: $130