Here’s a preview of what I’ll be discussing on Talking Numbers today around 3:20 to 3:30 pm EST on CNBC:
Now that AIG is free from the government ownership overhang, how does the stock’s prospects look from here? The stock had a brutal 2011, selling off from $50 to $20 before finding support at $20. The stock has since turned, as shown by the 1 year chart:
On the 1 year chart, AIG has been flat since the spring. But the stock has shifted from a downtrend in 2011 to an uptrend in 2012, which is evident from the change in slope of the 200 day moving average. For now, the stock looks rangebound to me until it can break above the resistance area between 35 and 36. A break above 36 would be a breakout to buy, especially since the stock no longer has looming government supply to contend with going forward. Conversely, a break back below the 200 day ma around 32 would mean that the supply had overwhelmed the potential buyers. I think the breakout to the upside is the more likely scenario, but it’s still a stock that I view as in wait-and-see mode for now.