NYSE:AIG may be ready to breakout.

A possible breakout setup was detected on AMERICAN INTERNATIONAL GROUP (NYSE:AIG) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could 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 75% 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 in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• Looking at the yearly performance, AIG did better than 83% of all other stocks. However, this relatively good performance is mostly due to a recent big move.

Looking at the 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 10 out of 10:

Besides having an excellent technical rating, AIG also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. 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 63.17, 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. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NYSE:AIG be traded?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Of course, there are many ways to trade or not trade NYSE:AIG and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout analyzer.