Reinsurance giant American International Group ( AIG) is scheduled to report their earnings numbers after the close of trading Monday. Let's check and see how the charts are pointed ahead of the numbers.
In this daily bar chart of AIG, below, we can see that the shares turned lower from April. Prices declined below the 50-day average line and the 200-day line. The stock just tested the underside of the declining 50-day moving average.
The daily On-Balance-Volume (OBV) line has been weakening since late March and tells us that sellers of AIG have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator has been rising from late June but still remains below the zero line and not in bullish territory.
In the weekly Japanese candlestick chart of AIG, below, we can see that the shares are trading below the declining 40-week moving average line. There are a number of recent lower shadows but they have not resulted in a rally.
The weekly OBV line shows a decline with only a limited move higher in July. The MACD oscillator is below the zero line but it has started to narrow.
In this daily Point and Figure chart of AIG, below, we can see that prices have reached a downside price target of $51. A trade at $48 should refresh the downtrend.
In this weekly Point and Figure chart of AIG, below, we can see a downside price target in the $45 area.
Bottom-line strategy: I have no special knowledge of what AIG is going to tell shareholders Monday evening but the charts and indicators suggest there could be further price weakness in the weeks ahead. Avoid the long side.
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