AIG finds buyers at key support level
American International Group Inc. (AIG) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
AIG finished the month 3.08% higher at 32.14 after gaining $0.36 (1.13%) today, slightly outperforming the S&P 500 (0.77%). Trading up to $0.31 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 31.95, the stock confirmed its breakout through the prior session high after trading up to $0.20 above it intraday.
Daily Candlestick Chart (AIG as at Jul 31, 2020):
Friday's trading range has been $0.75 (2.37%), that's below the last trading month's daily average range of $1.15. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AIG.
Four candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and two bearish patterns, the Bearish Hikkake Pattern and the Last Engulfing Top Pattern. The last time a Bearish Hikkake Pattern showed up on July 6th, AIG lost -5.11% on the following trading day.
After trading down to 31.40 earlier during the day, the market bounced off the key technical support level at 31.40 (S1). The failure to close below the support might increase that levels significance as support going forward.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 32.93 where further buy stops might get activated. As prices are trading close to July's high at 33.04, upside momentum could speed up should American International mark new highs for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for American International. Out of 408 times, AIG closed higher 59.80% 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 60.29% with an average market move of 0.82%.