AIG Bearish Signs

Published on Friday, 20 August 2010 08:18 Written by Christian Paolinetti

New York, August 20th (TradersHuddle.com) - Shares of American International Group, Inc. (NYSE:AIG) ended the trading session lower by $1.28 or -3.48% from its previous close. AIG's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

American International Group, Inc. (NYSE:AIG) through its subsidiaries provides a varied range of insurance and insurance-related products in the United States and abroad. The Company's main activities include both general insurance and life insurance & retirement services operations as well as financial services and asset management. AIG participates in the credit default swaps and mortgage backed securities markets.

AIG's current stock range is defined by calculated support defined at $35.51 and by the resistance level at $42.19, which should be used by traders planning their trades.

Traders wanting to establish a position in AIG stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current AIG shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: