America Movil (AMX) was upgraded by TheStreet's quantitative service today, so I decided to check the charts and indicators. After a significant decline in 2014 and 2015, AMX bottomed out in the low teens and launched an uptrend. Is there more upside?
In this daily bar chart of AMX, above, we can see how the rally kicked off in November. There is a bullish golden cross of the 50-day moving average advancing above the 200-day average line in late January. After tests in June and early July, AMX is still above the rising 50-day moving average line. The daily On-Balance-Volume (OBV) line also made a low in November and has improved, but it has not made a new high since May, and this bearish divergence needs to be watched. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish formation.
In this weekly chart of AMX, above, we can see prices are above the rising 40-week moving average line. The weekly OBV line is confirming the price strength with its own new high. The MACD oscillator narrowed toward a possible crossover, but it looks like it has been reversed to the upside.
In this Point and Figure chart of AMX, above, we can see the straight-up rally since March (look for the number "3" on the chart). Prices have reached an upside price target and with potential overhead resistance in the $19-$20 area. A period of sideways consolidation would be welcomed.
Bottom line: The quantitative upgrade keeps us positive, but we are likely to see some sideways price action before testing overhead resistance in the $19-$20 area.
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This column originally appeared at 2:21 p.m. ET on Real Money, our premium site for active traders. Click here to get great columns like this from Jim Cramer and other writers even earlier in the trading day.