Approaching Support: AIG

Published on Saturday, 21 July 2012 00:44 Written by TradersHuddle Wire

New York, July 21st (TradersHuddle.com) - Shares of American International Group, Inc. (NYSE:AIG) ended the trading session close to calculated support at $29.97, a level that will raise the attention of traders looking for an entry point.

AIG's stock range is defined by its calculated support defined at $29.97 and by the resistance level at $32.62. This range could be used as a reference by traders planning their next move. The area where buyer interest might materialize is defined as calculated support. Stocks trading near support might see upside if it can successfully hold the technical level. However, this area if breached will signal participants that the stock failed to entice buyers to step in to support it.

Traders wanting to establish a position should pay close attention to AIG's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $32.62 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

Shares of American International Group, Inc. closed at $31.03 in the prior trading session.

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.