AMERICAN INTERNATIONAL GROUP is setting up nicely for a breakout.

Our stock screener has spotted AMERICAN INTERNATIONAL GROUP (NYSE:AIG) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:AIG.

Zooming in on the technicals.

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

Overall AIG gets a technical rating of 7 out of 10. Although AIG is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• Both the short term and long term trends are positive. This is a very positive sign.
• AIG is one of the better performing stocks in the Insurance industry, it outperforms 73% of 148 stocks in the same industry.
• AIG is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so AIG slightly outperforms the market at the moment.
• In the last month AIG has a been trading in the 60.76 - 64.88 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.
• When comparing the yearly performance of all stocks, we notice that AIG is one of the better performing stocks in the market, outperforming 84% of all stocks. However, this relatively good performance is mostly due to a recent big move.

Why is NYSE:AIG a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:AIG scores a 9 out of 10:

Besides having an excellent technical rating, AIG also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 64.41. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 63.37, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for AIG in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

How can NYSE:AIG be traded?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout analyzer.