AIG pushes through Monday's high
American International Group Inc. (AIG) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AIG finished the month 3.73% higher at 31.18 after gaining $0.50 (1.63%) today on low volume, slightly outperforming the S&P 500 (1.54%). Closing above Monday's high at 30.89, American International confirmed its breakout through the previous session high after trading up to $0.51 above it intraday.
Daily Candlestick Chart (AIG as at Jun 30, 2020):
Tuesday's trading range has been $1.11 (3.65%), that's far below the last trading month's daily average range of $1.77. Weekly volatility is also lower, being way 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 29.49 and 31.64 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 31.12 (now S1), which is likely to act as support going forward. The last time this happened on June 3rd, AIG gained 5.89% on the following trading day. After spiking up to 31.40 during the day, the market found resistance at the 100-day moving average at 31.37.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 32.73 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 29.49 where further sell stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. Its common bullish interpretation has been confirmed for American International. Out of 429 times, AIG closed higher 55.48% 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 eight trading days, showing a win rate of 55.48% with an average market move of 0.18%.