Break down of weekly support @ $50.34.
Due to the earning report, AIG sustained a large drop today of 6.5%. It broke through the weekly support @ $50.34, and filtered with the 2nd weekly support at $48.33, and finished just south of it ($48.28).
Looking ahead, I think the stock will consolidate around the previously established consolidation zones. In the bullish case, it will be around $48.3-$50.3, and bearish case around $45.5-$48.3. Next week will the be key and will tell us which side it will take. Use RSI as your guide.
No position in AIG (Sold around $49.9 on 10/14), but looking to re-enter.
Due to the earning report, AIG sustained a large drop today of 6.5%. It broke through the weekly support @ $50.34, and filtered with the 2nd weekly support at $48.33, and finished just south of it ($48.28).
Looking ahead, I think the stock will consolidate around the previously established consolidation zones. In the bullish case, it will be around $48.3-$50.3, and bearish case around $45.5-$48.3. Next week will the be key and will tell us which side it will take. Use RSI as your guide.
No position in AIG (Sold around $49.9 on 10/14), but looking to re-enter.