America International Group has been on a downward spiral ever since the start of 2011 and it has been one hell of a downtrend on hindsight as the stock had fallen from its high of $52 to its current $32. Its a freaking one hell of a drop in 4 freaking months. The question now is whether the bottom is already in for AIG? I said its very highly possible. One could go long here with a stop loss at $31.75. Next support for AIG is at $30.
Let's take a look at its hourly (60 min) chart. Stock is trying to have a go at breaking its downtrend line on the 60min chart. Do also note that the stock price has also made a higher low at the bottom channel of the symmetrical triangle. Breakout traders would normally wait for the the stock price to break upwards before piling in. If you are looking for confirmation, AIG is definitely "not there" yet.
AIG 60 minute chart (Click on chart to enlarge)
Let's take a look at its daily chart. Could this be the start of a consolidation? One could also be looking at a bounce trade with immediate resistance at AIG's 200day MA. Note that trading hours are still not over yet at time of post.
Lastly, let us take a macro view using the weekly chart. While the week is not over yet at time of posting, one could see that price action for AIG is now resting on the Ichimoku Cloud support at $32. This is a very strong and significant support for Ichimoko traders like me. This could be the area where AIG could bounce. Weekly charts are powerful. This is the chart which lead me to the deduction that AIG's bottom might be somewhere around this area! Could be... possibly... and again, do use stop loss. =)
Good luck and happy holidays to all !
Disclaimer: I have just nibble at some shares of AIG today for the long term.
Let's take a look at its hourly (60 min) chart. Stock is trying to have a go at breaking its downtrend line on the 60min chart. Do also note that the stock price has also made a higher low at the bottom channel of the symmetrical triangle. Breakout traders would normally wait for the the stock price to break upwards before piling in. If you are looking for confirmation, AIG is definitely "not there" yet.
AIG 60 minute chart (Click on chart to enlarge)
Let's take a look at its daily chart. Could this be the start of a consolidation? One could also be looking at a bounce trade with immediate resistance at AIG's 200day MA. Note that trading hours are still not over yet at time of post.
Lastly, let us take a macro view using the weekly chart. While the week is not over yet at time of posting, one could see that price action for AIG is now resting on the Ichimoku Cloud support at $32. This is a very strong and significant support for Ichimoko traders like me. This could be the area where AIG could bounce. Weekly charts are powerful. This is the chart which lead me to the deduction that AIG's bottom might be somewhere around this area! Could be... possibly... and again, do use stop loss. =)
Good luck and happy holidays to all !
Disclaimer: I have just nibble at some shares of AIG today for the long term.
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