“Benmosche, Benmosche, AIG is Moving Higher”

• Posted by Greg Harmon
• on September 13th, 2012

….scaramouche, scaramouche will you do the fandango
Thunderbolts and lightning very very frighting…

Ok, his name reminds me of the line from Bohemian Rhapsody.

Financials are starting to come around and one of the best looking one’s on multiple timeframes is American International Group, $AIG. Take a look. The daily chart below shows the price approaching the recent top from May and August at 35 after a retest of the 32.65 breakout level held early in the week. It recovered from the treasury sale like a champ. With a Relative Strength Index (RSI) that is rising and bullish and a Moving Average Convergence Divergence indicator (MACD) that is trending back higher, there is support for more upside. Over 35, the target initially

American International Group, $AIG, Daily

would be 37.60. But looking further out at the weekly timeframe shows that it is moving up in a smaller Cup and Handle within a larger Cup and Handle. The targets for each are 42.82 and then 50.92. And this timeframe also has support from the RSI and MACD. Looking left on the chart the 42.82 level meshes nicely with the 430 consolidation area from early 2011 and the top at 52.67 with the higher target. Rounding out the analysis the 3-box reversal Point and Figure chart (PnF)

American International Group, $AIG, Weekly

carries a price objective of at least 42.50. Keep it on your radar and look for the break of 35 to trade it. Oh and try it out changing the words. Tell me it does not fit perfectly.

….Benmosche, Benmosche, AIG is Moving Higher
Thunderbolts and lightning very very frighting…

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