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kungfuguo
Sep 8, 2013 1:20 AM

AIG Weekly Analysis 9/7/13 Long

American International Group, Inc. NewNYSE

Description

Expect break out of consolidation.

Looking at the weekly AIG chart, AIG has been moving up as blocks (purple boxes) of consolidation zones. Each box usually last between 9-13 weeks long, and has a well defined support and resistant levels. Each break out is usually accompanied by a peak in RSI (usually break above 70). Overall there is still positive money flow into the stock (as shown by positive CMF 20).

Taking everything together, I expect AIG to continue this bullish trend. Looking at RSI, I expect another break out shortly (next coming week or so), as RSI is approaching 70.
Comments
kungfuguo
There will be another extended consolidation zone, I am guessing. Need to watch RSI. Might be interesting to sell covered calls when RSI drops below 70.
flapbreaker
looks like you were right. What next?
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