Trading Idea - Entry Levels for AIG

Published on Tuesday, 31 January 2012 07:52 Written by Christopher Lynn

New York, January 31st (TradersHuddle.com) - Shares of American International Group, Inc. (NYSE:AIG) are trading very close to calculated support at $24.16 with current price action closing at just $25.20 places the stock price near levels where traders will start paying attention.

AIG's current stock range is defined by current calculated support defined at $24.16 and by the resistance level at $25.90, which should be used by traders planning their trades. These support and resistance levels are based on an algorithm of peaks and troughs of the stock price action.

Traders wanting to establish a position should place close attention to AIG's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $25.90 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.

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.