AIG Stock Price Analysis, Stock Consolidating At 20 MA
AIG stock is one of those stocks that is famous because of the drastic crash it endured during the financial crisis. Everyday there are so many discussion about financial stocks in those days. Now that we are in 2016 and things are better, what has the stock done and where will it likely go?
As I look at the daily charts, I can see that this stock is consolidating at its 20 MA. Any stock that is forming a tight trading range and reaching its 20 day moving average will be mostly on my radar because they either tend to breakout or breakdown. To understand more about moving average, read What Is The Moving Average And How To Use It To Analyze Stocks. If it break out you buy them and hold for a while. If a failed breakout happens, you short it. Usually a failed breakout will be a fantastic drop which will make it a very fast drop within a day or two.
So traders might want to set an alert in their broker for a breakout or breakdown alert.
Again, this is not a trade recommendation. Let's be clear about that. I just happen to spot this stock making a certain pattern that interests me and I share it with the trading community. You enter or exit something based on your own trading strategies, not mine.
Let's take a look at what Mr, AIG is telling us about himself.
As I look at the daily charts, I can see that this stock is consolidating at its 20 MA. Any stock that is forming a tight trading range and reaching its 20 day moving average will be mostly on my radar because they either tend to breakout or breakdown. To understand more about moving average, read What Is The Moving Average And How To Use It To Analyze Stocks. If it break out you buy them and hold for a while. If a failed breakout happens, you short it. Usually a failed breakout will be a fantastic drop which will make it a very fast drop within a day or two.
So traders might want to set an alert in their broker for a breakout or breakdown alert.
Again, this is not a trade recommendation. Let's be clear about that. I just happen to spot this stock making a certain pattern that interests me and I share it with the trading community. You enter or exit something based on your own trading strategies, not mine.
Let's take a look at what Mr, AIG is telling us about himself.
For those of you who do not know what the Golden Mode Trend Indicator is, it is a trend following system that I use to determine the health of a stock or index and their trend. Absorbing supply is another piece of trading knowledge that many new analyst do not know. I will write about it someday. But basically what it says is if there is resistance overhead, you need to have it absorbed before a stock can rise smoothly.
That is why when you see a stock making new highs, they usually go higher astonishing many people. That's because with no resistance overhead, there is no need for any abosrption of supply and this the stock moves higher, way higher than where most people will believe it to go.
That is why when you see a stock making new highs, they usually go higher astonishing many people. That's because with no resistance overhead, there is no need for any abosrption of supply and this the stock moves higher, way higher than where most people will believe it to go.
Stage analysis is very useful in long term analysis of a stock or index. When you look at the weekly and monthly charts, stage analysis can tell you more stuff than any indicator can do.
For more stock analysis, go to Individual Stock Analysis And Index Analysis. To know what the markets are doing and likely to go, read my Daily Stock Market Analysis 2016. For long term views of the markets, go to Intermarket Analysis By Stephen Loke.
Hope this helps you a lot and that you enjoy this analysis as much as I love writing it. Have a great day!
Hope this helps you a lot and that you enjoy this analysis as much as I love writing it. Have a great day!
