Asset Managers Face Challenges Amidst Q2 Revenue Shortcomings

This week has been tough for many asset managers, as second quarter revenues didn’t quite meet expectations. By looking at stocks that reached new highs over the past three months, we’ve discovered some distinct asset managers. Apollo Global Management (APO), for instance, shows strong trending properties, with improved relative strength and support readings. The general feeling is that this upward trend is likely to continue.

The daily chart for APO depicts a reverse head and shoulders pattern, characterized by significant lows interspersed with higher and lower lows. A key component of this pattern is the neckline, which is a trend line connecting a swing high between the head and the two shoulders. Since July, there has been a noticeable uptrend, and Apollo appears to be completing a breakout above the neckline, fitting the reverse head and shoulders framework. This week’s rally also saw prices surpass the 200-day moving average for the first time since May. As long as APO remains above this average, the breakout seems to indicate a strong uptrend.

To evaluate price breakouts, checking the volume indicator is essential. Is there enough volume suggesting that the uptrend is backed by a significant number of buyers? In this case, the accumulation distribution indicator has been trending upward since late May, while Chaikin’s money flow has consistently remained above the critical zero line, confirming that APO is in an accumulation phase. This bolsters the bullish outlook since both volume indicators examine recent price breakouts.

Apollo’s weekly chart illustrates a series of periodic pullbacks during the overarching uptrend phase. Typically, after each major pullback, bullish crossovers in the PPO indicators confirm the beginning of a new uptrend phase. These bullish crossover signals have been marked with green vertical lines. Last month, a new buy signal was generated in the weekly PPO indicator for APO, indicating a “green light” for this money manager.

This week’s breakout has prompted a closer look at the technical elements surrounding Apollo Global Management. Given the analysis of trends, momentum, and volume, we might be on the brink of a new uptrend phase, potentially even a retest of all-time highs.