AIG Upside PrevailsThe bullish trend remains intact as price rebounds forming a pin bar at support. Bullish trades remain favored.
AIG trade ideas
AIG toppy and weak AIG TOPPING - ROLLING OVER
T-Bonds went down first -
Then Utilities went next -
Then the banks are toppy & have head&shoulders tops -
Now the insurance sector is starting to show divergences -
TRIPLE DIVERGENCE IN CCI WHICH IS PRICE MOMENTUM, REVEALS INTERNAL WEAKNESS
POSSIBLE SELLING PRESSURE AHEAD AS THE BUYERS HAVE SLOWED THEIR MOMENTUM.
Just for balance: It would seem logical for AIG to have a period where some money comes off the table.
Risk = 3 average ranges
Reward = 3-5 average ranges
Tim 5:11PM EST Thursday, October 3, 2013
AIG Mid-week analysis 9/16/2013Breaking out of consolidation $45-$48, looking to establish another zone of consolidation.
This is a follow up the chart that I published 2 weeks ago. ()
Looking at AIG weekly chart, AIG has been moving up along zones of consolidation. Each breakaway is signaled by RSI approach or above 70. Last week, we saw another break out (RSI is above 70). Currently, we are seeing the confirmation of the bullish breakaway. I expect that we will establish another period of consolidation shortly, this will be signaled by peaking of RSI.
Long AIG
AIG 6/20/2013AIG has been in consolidation pattern since May, but now forming a descending triangle with short term support at $44.50 and $43.25. Volume has return to normal. However, I expect a break out from consolidation shortly. If it is unable to hold about these support levels, expect breakdown to fill the gap at $42-$43 range.
AIG base formationMassive base formation from 26 - 20 should allow for a 6-12 month rally to 32. High frequency trading at 24 - 23 signals strong support at that level. US Gov't investment is a negative but it is widely known and therefore, discounted.
I view $24-$23 as a level that is the lowest risk price zone to buy shares, but I doubt AIG will get back to that price zone. Therefore, I suggest selling $25 strike puts and $24 strike puts against cash holdings for 3-6-9 months to generate returns. Keep in mind that $29 was the price for a massive secondary stock offering last year in May and is therefore key resistance that will take a few attempts to push through.
By: Technical Tim, Friday, Jan 20, 2012 10:41AM EST
