• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Financial Services

Will AIG's Stock Price Retest the Lows of 2016?

Shares look vulnerable to more declines.
By BRUCE KAMICH
Mar 16, 2018 | 02:38 PM EDT
Stocks quotes in this article: AIG

American International Group Inc. (AIG) has declined sharply since the end of January but it still looks vulnerable. Prices made a 2017 high in early August and have been weakening since that zenith. Will prices retest the lows of 2016? Let's see how the charts and indicators look.

In this daily bar chart of AIG, below, we can see that prices are below the declining 50-day moving average line and the declining 200-day average line. The daily On-Balance-Volume (OBV) line has been moving up and down with the price action and has been in a declining phase since late January.

The December low in the OBV line could be broken in the days and weeks ahead. The 12-day momentum study shows a higher low from February to March compared to lower lows in the price chart. This is a bullish divergence but the time frame is not all that meaningful.

In this weekly bar chart of AIG, below, we can see that prices are below the declining 40-week moving average line. The weekly OBV line has been slowly weakening since early 2017 and suggests that sellers of AIG have been more aggressive.

The weekly Moving Average Convergence Divergence (MACD) oscillator made a peak in early 2017 and has been on the defensive ever since. The MACD oscillator is pointed lower and below the zero line -- a bearish setup.

In this Point and Figure chart of AIG, below, we can see the recent new low of $54.70 and the downside price target of $50.47.

Bottom line: AIG looks like it is heading lower to retest and maybe break the lows of 2016 in the $50 area.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | U.S. Equity | Financial Services | How-to

More from Financial Services

Berkshire and Buffett Rightly Put Their Value Stamp of Approval on Citigroup

Brad Ginesin
May 17, 2022 10:01 AM EDT

The nod from the Oracle of Omaha's company could signal that it's finally the right time to buy the banking giant.

SoFi Technologies Is Primed for a Rebound

Bruce Kamich
May 16, 2022 8:50 AM EDT

Here's where the shares may be headed next.

Affirm's Results Impressed and Here's Why I Want a Piece of the Action

Stephen Guilfoyle
May 13, 2022 11:00 AM EDT

There are several reasons why the shares were trading higher.

Affirm's Bounce Fails to Impress Me

Bruce Kamich
May 13, 2022 8:45 AM EDT

Don't expect AFRM to rally for long or go very far.

Time to Toss COIN

Bruce Kamich
May 11, 2022 11:56 AM EDT

There's no way around it, Coinbase's charts look tarnished following its earnings miss. Let's see if there's a silver lining in this for traders ... or not.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 01:44 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10 Portfolio

    We're making a series of trades here.
  • 03:07 PM EDT PAUL PRICE

    Why Is Walmart Down Big Today?

    Besides its poor earnings report Walmart was way...
  • 07:14 PM EDT PAUL PRICE

    A New, Very Scary Movie

  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login