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Tuesday, March 4, 2014

AIG Assumes a Strong Bullish Bias

AIG stock (NYSE:AIG) has been showing some signs of renewed bullish bias – as revealed by the current price action. Bearish pulls have been rejected and the price has been trending upwards.


The EMA 11 is almost above the EMA 56 and the RSI period 14 is above the level 50. In this renewed bullish bias, the price may test the resistance level at 52.00. Should this resistance level be breached to the upside, the next target would be the resistance level at 60.00. This is the target for this year. Additionally, there are consolidation phases amidst the dominant bias – the consolidation phases thus proffer opportunities to open trades in the direction of the bias. This is what some speculators prefer.

Conclusion: American International Group (AIG) is expected to move upwards gradually. On the other hand, if the price has not rallied and it has continued to move south, the initial price action expectation would have been rendered invalid and as a result of that the order would have been smoothed at a predetermined exit.

This forecast is ended with the quote below:

“Nobody can give an exact prognosis about future price developments. It is always
only an assumption which direction price will move. This assumption will be met – or not.” – Wilhelm Eder

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders



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