AIG reached a new 52 week high of $54.59 on January 7, 2011 and started a downtrend. The company released its quarterly earnings on Thursday February 24, 2011 and posted a profit of $16.60 per share, market was expecting a loss of $16.98. During the same quarter a year ago, the company posted a loss of $53.23 per share.
This Stock is going sideways several days now and is currently trading at $37.11. In the daily candlestick chart below, I drew two support lines below and two resistance lines above its current price level. What I am looking for is it’s move beyond the yellow trend line, which will confirm its change in trend.
My plan is to buy total of 300 shares in two steps, first I will be buying 100 shares if and when it crosses $38.50 and will setup a sell stop just below support 1 at $36.50. I will be taking a risk of about 2 dollars a share at this point, which is going to be a total of 200 dollars. If it continues upward trend, I will be buying another 200 shares at $40.23 and will setup a sell stop at $39.93 to sell all 300 shares.
Thank you for visiting this blog and wish you good luck swing trading.
Do you have a target in mind for this weeks trade, AIG?
Hi Howard, My target for AIG is right around Resistance 2, which is at @45.90