AIG Reported Earnings Thursday Night – Now What?
- Posted by Greg Harmon
- on February 23rd, 2012
AIG, $AIG, reported earnings Thursday night and knocked the cover off of the ball. The stock was up over 8% after hours on the news. So is it too late to buy this stock with that big run? Lets look.
The daily chart above has been amended to show the after hours activity. Notice that prior to reporting it had closed the regular session at a price of 27.99 and just above long term support/resistance represented by the red/green line. Without earnings this would trigger a buy signal itself. But look more closely. The after hours move, if it holds puts it also over the second peak in July as well. It has a bullish Relative Strength Index (RSI) aiding it as well. This move will likely accelerate the impending Golden Cross, the 50 day Simple Moving Average (SMA) crossing up through the 200 day SMA. And it has been rising for a while. This is a bit more discernible on the weekly chart below. Here the trend clearly flipped to bullish in November but the price is only now making it out of the consolidation zone from the second half of 2011. You can see that the after hours action completes a ‘W’ bottoming pattern as well. But the RSI on this timeframe
continues to trend higher with a Moving Average Convergence Divergence (MACD) indicator that is also trending higher and positive. This is a very bullish chart if it holds up Friday. So did you miss the move in $AIG. Hardly, it looks to be heading back to the 42 level over time from these charts.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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