AMERICAN INTERNATIONAL GROUP (NYSE:AIG) - A Technical Breakout Candidate Worth Watching

AMERICAN INTERNATIONAL GROUP (NYSE:AIG) has appeared in our Technical Breakout screen, showing a combination of solid technical strength and a high-quality setup pattern. The stock currently holds a Technical Rating of 7 and an impressive Setup Rating of 9, suggesting potential for a breakout. Below, we examine why AIG stands out for technical investors.

Technical Strength

• Trends: Both short-term and long-term trends for AIG are positive, reinforcing a bullish outlook.
• Moving Averages: The stock is trading above its 20-day, 50-day, 100-day, and 200-day moving averages, indicating sustained upward momentum.
• Relative Performance: While AIG has outperformed 65% of all stocks over the past year, it remains an average performer in the insurance sector, suggesting room for further upside.
• Volume: Average daily volume stands at 3.84 million shares, providing sufficient liquidity for traders.

Setup Quality

• Consolidation: Prices have been consolidating between $81.62 and $87.46 over the past month, with the stock now trading near the upper end of this range.
• Support & Resistance: A clear resistance zone exists between $87.34 and $87.72. A breakout above this level could signal further gains. Support is found at $84.95, offering a logical stop-loss level.
• Reduced Volatility: Recent price action shows tightening volatility, often a precursor to a breakout.
• Pocket Pivot: A recent pocket pivot signal—where price rises on higher volume—adds further bullish confirmation.

Potential Trade Setup

• Entry: A buy stop order above resistance at $87.73 could capitalize on a confirmed breakout.
• Exit: A stop-loss below $83.66 limits downside risk to 4.64%.
• Risk Management: Allocating 21.56% of capital to this trade would keep portfolio risk at 1%.

For a deeper look at the technicals, review the full TA report for AIG.

Our Technical Breakout screener updates daily with new breakout candidates.

Disclaimer

This is not investment advice. Always conduct your own analysis and consider risk management before trading.