• 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
    • TheStreet Smarts
  1. Home
  2. / Investing

American International Group Could Suffer as Fears of Reinsurance Claims Mount

Let's review the charts and indicators once again.
By BRUCE KAMICH
Mar 12, 2020 | 10:25 AM EDT
Stocks quotes in this article: AIG

I am not a fundamental analyst though I passed the Series 86 exam years ago What I do is listen to the fundamentals from time to time. I like to pay attention to "knock on effects", and what can happen after the obvious. 

 
Everyone can figure out that the airlines and the travel industry is being impacted but the knock on effect hits the reinsurance industry. Some of the business lines that could be triggered by claims include aviation, travel insurance, credit insurance, and contingency or event cancellation coverage, for example.  
 
We checked out American International Group ( AIG) late last month a fresh look seems like a good idea. 
 
In this updated weekly bar chart of AIG going back to 2010, below, we can see what now looks like a large seven-year top formation. Prices broke down from the top in late 2018 but managed a rebound rally back into the top pattern. AIG rolled over again last year and has quickly melted down in the past several weeks.
 
The weekly OBV line has been in a decline since early 2017 so this means to me that there has been a significant shift out of AIG.
 
The 12-week price momentum study in the lower panel of this chart is hard to read but it tells us that the pace of the decline has not slowed. Not a good sign.  
 
 
In this weekly Point and Figure chart of AIG, below, we modified the chart to use a traditional plotting approach but with a bigger reversal threshold. This technique can generate longer-term price targets.
 
Don't shoot the messenger but the chart is indicating a possible downside price target of $6 or a return to the lows of 2009.  
 
 
 
Bottom line strategy: Charts are a reflection of people's hopes and fears, and right now they seem to reflect more fear than anything else.
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 prohibited from trading individual securities.

TAGS: Investing | Markets | Stocks | Technical Analysis | Trading | Commercial & Professional Services

More from Investing

Bearish Bets: 3 Stocks You Should Really Consider Shorting This Week

Bob Lang
May 28, 2023 10:30 AM EDT

These recently downgraded names are displaying both quantitative and technical deterioration.

I See a Way to Make Some Bread Off of Toast Inc.

Bret Jensen
May 28, 2023 7:00 AM EDT

Here's an options play on this software company for the restaurant industry.

Don't Just Sit There and 'Hope' for Your Stocks, Make a Decision

James "Rev Shark" DePorre
May 27, 2023 10:00 AM EDT

The biggest investing and trading mistake that people make is that they don't have a plan.

3 High-Yield International Oil & Gas Majors

Bob Ciura
May 27, 2023 7:15 AM EDT

The top global energy names are returning more cash to shareholders through dividends and share repurchases.

Nvidia Caught Traders Off Guard, Will Debt News Do the Same Soon?

James "Rev Shark" DePorre
May 26, 2023 4:57 PM EDT

We got a broad rally on Friday after a week of narrow action -- but once the debt ceiling news hits, the market will go on to the next stage of action.

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

  • 09:48 AM EDT CHRIS VERSACE

    Latest AAP Podcast With Portillo's CEO!

    Listen in as we talk with a rising star in the Chi...
  • 03:25 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Don't Just Sit There and 'Hope' for Your Stocks, M...
  • 07:32 AM EDT BOB LANG

    Webinar Thursday After the Close: Option Spread Trading

    Thursday, my good friend and colleague Sam DeMarco...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 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