Assured Guaranty Ltd. (AGO)

[UpstateChris]

AGO, on complete lack of news, has lost significant ground over the past few trading sessions. From highs around the 18.50 mark to a current of hovering around $15 - essentially where it was prior to the upgrade, good Q numbers and 2M share buy back announcement. AGO follows the major indices down but is slow to recover without additional equity specific fundamental motivations. While volume is sustaining at the average, most of the indicators are bottoming out. Stochastic shows way oversold at a 3.93. RSI at 24.42 and declining. MACD cross to the negative, ADX negative though with a weak trend line. BBands opening up as the stock breaks lower over the past 7 sessions. While we bounced off this level in July, a stronger support is around the $13 level. Given the recent news this would be a ridiculously low entry point.

While I remain long term positive about AGO, at the current time there is no fundamental nor technical reason to believe this stock will make a recovery in the near term. If you are a long term investor this does appear to be the bottom, or close to it, short of broader market declines.