1- AIG volume has been decreasing and price range have been trading in a tighter range in last few days and usually there will be a reversal action w/in the next few days forward (bottoming process in this case).
2- It has crossed the 50 day moving avg easily a couple of weeks ago and it hast tested the 50 DMA in last couple of days and is well staying above the 50 DMA.
3- Today, the 20 DMA is crossing the 50 DMA in and that is an encouraging sign (both 20 and 50 DMA is now $.90).
4- Money flow index (chart) shows it has flatten short term and is moving upward slowly.
5- Slow Stochastics (14,3) shows K14 is crossing D3
6- Volume was very heavy on much higher closing price (% wise) on 18 and 19th of March; that is a 2 days in a row which is very strong sign of better days ahead.... To make it simpler, higher volume on positive days and lower volume on negative days are extremely very positive indicator sign for a stock.
I personally expect AIG goes much higher (%wise) in next few days based on all the technicals unless a major bad news doesn't let it so.
If I had $20k to spare.... I'd put $20k in AIG first thing in the morning :) and then sell in five trading days from now no matter what the price.... Call me what ever name you want. I'd do it first think in the morning. The person with the biggest balls wins!
Friday we completed a 5 day summation series. During the 5 days AIG defined a bottom by a pattern call a "ISLAND BOTTOM" BTW this is a rare pattern. On the last day of the summation series we filled the island gap and closed above it. We closed the week positive by 11% :) If you read my last two posts I said we would hedge higher until friday or monday which would take us to the resistance of 1.33... this week we enter the 8 day summation based on the 3/19 peak. We hopefully should see a rise starting monday and taking a stab @ 1.33 :) The part I like the best but it will keep us all on our toes: AIG is now at a pivot point from a range of 1.07 to 1.33. We all know we must have a strong close over 1.33 to see $2+ If we violate 1.07 and close below it then we will be headed below a buck. But based on AIG's recent candle patterns we have a strong probability for a positive gain starting this week :)
OMG! We have created an Island!!!!! It's hard not to get excited when I see one of these. If we dont close todays gap for the next three days I know we will break 1.33 It's very important to break that barrier. An island is a sign of a strong run if it pans out.
Hear are the details:
1) on 3/27 aig gapped down (GAP/window 1.08-1.10) 2cent window
2) on 4/2 aig gapped up (GAP/window1.07-1.10) 3cent window
the trading days in between never closed the gaps/window
AIG defined a bottom, Volume dried up at the bottom, we created an island, today we gap up with high volume, tomorrow we finish a 5 day summation series.
What do we whant to see? 3 days of trading over the island without closing the gaps, steady volume, and a break above 1.33 (it was 1.40 but the resistance has been lowered) I had a 2.00 target but if this window does not get filled I see a stronger move to the upside... Im not pumping this stock btw It's just making all the right moves.... Have patients!!!!!!!!! Good luck longs!!!!!!!!!!!