Patience with AIG

Published on Monday, 30 January 2012 05:48 Written by TradersHuddle Staff

New York, January 30th (TradersHuddle.com) - Shares of American International Group, Inc. (NYSE:AIG) closed the trading session at $25.25 near its 200 day moving average currently set at $25.92. AIG's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 200 day moving average.

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.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $24.16 and calculated resistance at $25.90. These levels are being closely watched by traders, as they provide great reference points for the latest price dynamics in AIG shares.

Traders should evaluate their trade if they want to establish a position on AIG given the resistance could materialize as the stock approaches the 200 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes, traders need to exercise patience. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price action reference points.