AIG closes above its opening price after recovering from early selling pressure
American International Group Inc. (AIG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AIG finished the week 9.14% higher at 28.89 after edging higher $0.08 (0.28%) today on low volume, slightly outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 28.89 marks the highest recorded closing price since March 11th. Trading up to $0.66 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 15th, AIG gained 7.48% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AIG as at May 22, 2020):
Friday's trading range has been $0.76 (2.63%), that's far below the last trading month's daily average range of $1.42. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AIG. Prices continued to consolidate within a tight trading range between 27.43 and 29.23 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, five candlestick patterns are matching today's price action, the Bearish Doji Star, the Bearish Harami Cross Pattern, the Hanging Man and the Northern Doji which are known as bearish patterns and one neutral pattern, the Doji.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 29.23 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 27.43 where further sell stops could get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Cross Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for American International. Out of 4 times, AIG closed higher 75.00% 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 nine trading days, showing a win rate of 75.00% with an average market move of 0.42%.