AMP the Fifth Pillar – a Chart Snapshot

Disclaimer:

This chart is information of a general nature for those with an interest in technical analysis. Do not rely on it for investment purposes without obtaining qualified professional investment advice.

Background information

http://en.wikipedia.org/wiki/AMP_Limited

The three divisions of AMP are:

AMP Financial Services provides financial planning advice, superannuation, retirement savings and income products, investments, risk insurance and selected banking products. These products and services are primarily distributed through a network of self-employed financial planners. AMP Financial services contributes the vast majority of group revenue and profit. AMP has been granted a MySuper authority, enabling it to continue to receive default superannuation contributions from 1 Jan 2014.

AMP Capital is one of Asia Pacific’s largest investment managers.  Through a team of investment professionals across the world, it invests in equities, fixed interest, infrastructure, property, diversified funds and multi-manager funds.  It is the top 10 global investment manager in infrastructure and top 25 in real estate.[2]

AMP SMSF is a newly formed business unit to deliver self-managed superannuation funds (SMSF) administration services to individuals, accountants, stockbrokers and external financial advisers, and develop SMSF advice and packaged solutions.

Chart snapshot

 

Likely to resume trending

Likely to resume trending

Technical considerations

  1. The share-price has been in an uptrend the last six months, rising from a low of $4.11 early February 2014 to a resistance high at $5.44.
  2. The last two months the trend has lost momentum but the medium-term averages are still rising.
  3. Although the short-term averages dipped into the medium-term  counterparts, cross-overs were averted when a rebound in the share-price occurred.
  4. Both short and medium-term averages are now rising and diverging, and challenging resistance at $5.45.

Conclusions

If the share-price penetrates resistance it would be an entry signal for a long position.

A stop/loss position could be at $5.25.

I understand that AMP has largely divested the riskier insurance arm of its business enterprises to concentrate on the more reliable wealth creation activities, with increasing success.

In comparison to the four banking pillars it is cheaply priced, although long-term shareholders will not have forgotten the early bad-old days when it failed to realize on its potential and the share-price collapsed from around $20 at its float to bottom at a lowly $2.72 in 2003 before re-structuring.

 



Categories: Chart Analyses, Technical Analysis

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  1. AMP – Take-over speculation | Technically Speaking

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