Technical Analysis: Based on the technical indicators, AIG is currently showing mixed signals. The RSI(14) at 52.11 indicates a neutral momentum, neither overbought nor oversold . The MACD at 0.29 suggests a slightly bullish short-term trend. The stock is currently trading below its 200-day SMA of 74.47, indicating some bearish pressure in the longer term.
News Sentiment Analysis: Recent significant news includes:
Price Prediction for Next Week: Based on Fibonacci levels:
Trading Recommendation: Given the technical indicators and recent news sentiment, AIG is likely to trade between $70.33 (S1) and $75.45 (R1) next week. The recommendation is to SELL at current levels with the following reasoning:
Target entry price: Current market price (~$73) Target exit price: $70.33 (S1 support) Stop loss: $75.45 (R1 resistance)
The price of AIG is predicted to go up -9.68%, based on the high correlation periods with AOS. The similarity of these two price pattern on the periods is 92.39%.
AIG
AOS
The aftermath of AIG's issues during the financial crisis occupied management's attention for quite some time. With these issues now resolved, there could be ample scope for improvement.
AIG has demonstrated significant progress in improving underwriting margins in its P&C business.
The current focus on risk-adjusted returns sets a proper course for the company, and just increasing profitability to the level of its peers would represent a material improvement.
BMO Capital
Price Target
$90 → $84
Upside
+9.02%
B of A Securities
Price Target
$82 → $86
Upside
+12.51%
JP Morgan
Price Target
$93 → $89
Upside
+16.43%