The direction of interest rates is very important for the pricing of many insurance products. Interest rates have been on the rise ( see our story on the ( TLT) today) so this seems like an opportune time to take a look at the charts of American International Group ( AIG) . 
In this daily bar chart of AIG, below, we can see that prices have traded higher the past 12 months. Prices bounced off the rising 200-day moving average line in December and approached the line in January. The slope of the shorter 50-day moving average line is positive. The trading volume has not increased in January and February as prices made new highs. New price highs without an increase in buying is an old warning signal.
The On-Balance-Volume (OBV) line has not broken above its October high even though prices have a bearish divergence. The 12-day price momentum indicator shows a lower high from January to February even as prices made a higher high. This is a bearish divergence and another "heads up" for traders.
In this weekly Japanese candlestick chart of AIG, below, we see some clues worth pointing out. Prices have rallied the past two years but the trading volume has been diminishing the entire rise.
The weekly OBV line shows a rise but an October-January double top. The weekly Moving Average Convergence Divergence (MACD) oscillator shows weakness from June.
In this daily Point and Figure chart of AIG, below, we can see that prices just made a new high for the move up. An $82 price target is shown. A trade at $55 would weaken the chart.
In this weekly Point and Figure chart of AIG, below, we can see a $70 price target. Interesting that the longer-term chart has a price target lower than the daily chart.
Bottom line strategy: Wednesday's and today's candle patterns have upper shadows telling me that traders are rejecting the highs. The bar chart pattern today is looking like an outside day and lower close. Short-term traders will see these clues pointing to a vulnerable condition. Avoid the long side of AIG.
