New York, May 17th (TradersHuddle.com) - Shares of American International Group, Inc. (NYSE:AIG) closed the trading session at $30.45 below calculated support at $30.46. The stock broke down technically, raising concerns as the move might trigger additional selling.
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 stock was trading in a well defined range with support at $30.46 and resistance at $32.55; given that this range was broken traders will be closely monitoring the stock's price action for clues of direction.
From a technical perspective, it can be expected that previous support becomes resistance, as the new range gets defined. However, $30.46 will remain in focus as AIG's price action places the stock near the broken support. Traders will be waiting to see if it can bounce back and return to its previous range.
Traders wanting to establish a short position in AIG can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes again at previous support of $30.46. However, if traders want to build a long position, the best entry point to do so is when the price action takes the stock back to calculated support.