This is a 5-Day chart for AIG with a Daily Chart. AIG showed extreme weakness, compared to the over all market. However, this stock will turn on a dime, if it has to. Case in point Sep 9, open a short position with good analysis to the dowside, we thought it would continue and we got caught with our hands in the cookie jar, before dinner time. As you can see, from the 5-Day that the stock bounced right off a support level of $36 per share and has not looked back since then. A little run and bump with Timothy speaking in front of a committee. AIG ended down for the day. GS was positive for the day.
Chart courtesy of http://www.stockcharts.com/ ( click to enlarge )AIG appears to be forming a island reverse with a bear flag attached to it. Let's see what will happen in a the next couple of days, as options expiration is next week for the Sep Options.
BTW AIG was and is apparently try to sell partnerships (instead of sell it completely) in the remaining asset they have, inorder to payback the TARP money the owe the TAXPAYERS. Also, they are looking to do an IPO for one of their companies as well.
Disclosure: The author purchased shares of AIG Wednesday at an average price of $36.00 This article should not be considered a recommendation to buy or sell securities and readers should conduct their own due diligence prior to making any investment decisions. The author has no obligation to update this article in light of changing future circumstances or post an article prior to taking further actions in either security.
