AIG closes higher for the 4th day in a row
American International Group Inc. (AIG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, AIG ended Thursday at 27.51 gaining $1.79 (6.96%), outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AIG as at Mar 26, 2020):
Thursday's trading range has been $2.17 (8.41%), that's below the last trading month's daily average range of $2.98. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AIG.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, AIG gained 12.17% on the following trading day.
Prices are trading close to the key technical resistance level at 27.75 (R1). After having been unable to move above 27.75 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 27.67.
While the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 27.75 where further buy stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for American International. Out of 777 times, AIG closed higher 52.38% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.34% with an average market move of 0.28%.