NYSE:AIG   American International Group, Inc. New
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3
Massive base formation from 26 - 20 should allow for a 6-12 month rally to 32. High frequency trading at 24 - 23 signals strong support at that level. US Gov't investment is a negative but it is widely known and therefore, discounted.
I view $24-$23 as a level that is the lowest risk price zone to buy shares, but I doubt AIG will get back to that price zone. Therefore, I suggest selling $25 strike puts and $24 strike puts against cash holdings for 3-6-9 months to generate returns. Keep in mind that $29 was the price for a massive secondary stock offering last year in May and is therefore key resistance that will take a few attempts to push through.

By: Technical Tim, Friday, Jan 20, 2012 10:41AM EST
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Comments

Haha, timwest, hope you held this one! :)
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timwest beckyhiu
Thanks. I have done very well with AIG. I even wrote call options against it to add to the return several times. AIG is a powerhouse for making profits and people's fear that it is Government owned have kept the stock extremely cheap relative to its peers. Thanks for searching out this one and sending me a comment. :-)
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AIG is tracing out the projected pattern somewhat closely.
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+1
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timwest charttrader
Thanks? Is +1 a "like"?
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Absolutely. I add my vote to this idea.
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timwest charttrader
:-) That gap up to near $30 was a nice gift. Anything over $29 was a welcome exit. Hope you did well.
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Closed position y profit target:))
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