Libbyt,
In looking at the weekly chart for a longer term view, I see AIG up against long term resistance. Price has failed to break out above the 500 week moving average (sounds like a long time doesn't it), but it is serving as resistance. Add to this a declining 20 week moving average coming down to meet the 500 week moving average and you have a fairly strong resistance level.
It really isn't the moving averages that are providing resistance here though, it's price resistance. Price has come up to the 3rd quarter lows of 2004 and the moving averages just happen to be there. Price resistance is actually holding AIG back at this time.
Weekly Chart:
stockcharts.com[h,a]waclyiay[d20040625,20050625][pb500!b20!f][vc60][iut!Lah12,26,9!Lc20]&pref=G
If price can trade above $56.88, AIG is a buy for those with a long term view.
If one is looking short term, AIG is setting up with a 3 bar reversal pattern. It's not a very strong pattern and in fact, it is suggesting weakness. AIG, in the short term, may want to come down and test the 50 day moving average, but any upside will be limited because of longer term resistance levels. AIG may capture a buck or two to the upside but until it gets above resistance on the weekly chart, I would avoid it for now.
Daily Chart:
stockcharts.com[h,a]daclyiay[d20050325,20050625][pb50!b20!f][vc60][iut!Lah12,26,9!Lc20]&pref=G
dabum |
