AIG Is Near a Key Resistance Area

Published on Friday, 20 July 2012 10:20 Written by TradersHuddle Wire

New York, July 20th (TradersHuddle.com) - Shares of American International Group, Inc. (NYSE:AIG) are trading very close to calculated resistance at $32.62. The stock ended the trading session at just $31.76, which is near levels that make it difficult to buy or start a 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.

AIG's stock range is defined by its calculated support defined at $29.97 and by the resistance level at $32.62; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for AIG. However, as the stock pulls back towards $29.97 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $32.62 then traders will get an opportunity to enter the stock as it moves to a higher range.