AIG has been a considerable underperformer versus the broader market for some time. Generally such ‘laggers’ are hit hardest early on when a broader market correction gets under way. Since we are considerably bearish on the market and the insurance sector as a whole, we are preparing a watch list for potential short-entry candidates. AIG immediately comes to mind…
Sellers are gunning for the daily/weekly pivots around 58.80. Closing below this area means the start of a daily as well as weekly corrective phase. Downside risk is considerable; first support comes in around ~49.75, but our price projections come in a bit lower, namely at 45.65.
Stops can be maintained relatively nearby at 62.50 (aggressive) or max 66.90, making AIG an excellent short-entry candidate for the near term as well as medium term.
- Primary trend: neutral
- Outlook: elaborate consolidation, negative < 58.80
- Strategy: avoid or short-entry < 58.50
- Support: 58.80 / 49.75 / 45.65*
- Resistance: 62.50 / 66.90+
- Outlook cancelled/neutralized above 62.50
- Description: American International Group (AIG) is an international insurance organization serving commercial, institutional and individual customers. AIG provides property-casualty insurance, life insurance, and retirement services.
- Market Cap: USD 53.5 bln
- Current P/E ratio: 25.6
- Dividend Yield (TTM): 2.15%
- Earnings per Share (TTM): 2.32
Weekly chart American International Group (NYSE:AIG)