Many investors think that large cap, world class global stocks like AIG can always be bought when they have an off day such as yesterday when AIG shares plummeted over 11.00 %. The logic tends to go something like this, " Wow AIG got really pasted yesterday it has to be overdone and a god buy here, after all it is AIG." But as the attached chart shows buying a falling stock can be akin to trying to catch a falling knife. In other words it can get pretty dicey. Even taking into account yesterday's decline we caution investors that with a FusionIQ technical rank of only 12 (out of a possible 100) AIG is likely to go lower still, even if a nominal bounce were to occur in the interim. That said we as the attached chart shows we think AIG now won't find support until it hits $ 32.00. This support level ironically coincides with the downside unbiased, point and figure objective price target of $ 33.00.
American International Group (AIG) - Weekly Chart through yesterday's close