AIG Closing in to Resistance

Published on Friday, 30 July 2010 06:52 Written by Christopher Lynn

New York, July 30th (TradersHuddle.com) - Shares of American International Group, Inc. (NYSE:AIG) are trading very close to calculated resistance at $40.11 with the current price action closing at just $38.97 placing the stock near levels that make it difficult to buy.

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 current stock range is defined by current calculated support defined at $34.51 and by the resistance level at $40.11, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for AIG, as the stock is well above support, however, as the stock pulls back towards $34.51 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $40.11 then traders will get an opportunity to enter AIG stock by establishing a position as the stock moves to a higher range.