AIG breaks back above 20-day moving average
American International Group Inc. (AIG) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
AIG finished Wednesday at 29.77 gaining $0.84 (2.9%) on high volume, strongly outperforming the S&P 500 (-0.46%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AIG as at Sep 16, 2020):
Wednesday's trading range has been $1.47 (5.11%), that's far above the last trading month's daily average range of $0.99. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AIG.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Even with a weak opening the stock managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close back above the 20-day moving average at 29.22. After spiking up to 30.06 during the day, the market found resistance at the 100-day moving average at 30.06. The last time this happened on June 30th, AIG lost -5.13% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to September's high at 30.96, upside momentum might speed up should American International mark new highs for the month. Trading close to July's low at 27.98 we could see further downside momentum if potential sell stops at the level get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for American International. Out of 148 times, AIG closed higher 53.38% 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 62.16% with an average market move of 1.15%.