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This stock has performed nicely over the past two months, but now some of the technical indicators are suggesting that a short-term top may be forming. As you can see from the chart below, the Relative Strength Index - an indicator that is used to determine overbought or oversold conditions - has crossed below a major signal line (down through 70). This cross of the RSI is used by the bears to predict the beginning of a more significant pullback. If AFG falls below the support of the 15 DMA, the next target would be at the bottom of the gap near $35.

We've also added the MACD, which has also crossed below a major signal line confirming our prediction of a move lower.


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