Long AIG on a breakout of a clean triangle consolidation. The breakout of the upper triangle edge resistance line means we have a good chance to tag higher prices. Momentum indicator divergence supports the idea that this consolidation is a reversion of short sentiment.
Not that this is necessarily meaningful, but I find the characteristics of these assets rather strikingly similar. While I certainly would not trade off this alone, it kind of cements my view that Gold is potentially due to for a huge selloff here, which is a very contrarian take in today's market environment.
The charts read extremely similarly...
Beautiful inverted head and shoulders here..
This is a technical trade, setup looks good with volume supporting to the patterns validity. Safe play is entering upon a break of neckline, or on an s/r flip above the neckline
Distance from neck to head is roughly 20%, putting our target in the low 50's. To the right, there is a conveniently situated VPVR gap...
AIG looks to be following the depicted Channel as shown by the upward diagonal white lines. The Downward red diagonal line is the longer term resistance for price to breakout of or be pushed back down.
The RSI on the one hour chart is moving to the oversold area and the SMII is also pointing upward, indicating that price for the short term will continue a move...
In the last 4-5 bars, AIG attracted very few buy power.
My quant model predicts
Profitability: it has a high probability(80%) to drop below this level (38.75).
Worst Case: it could rise to $41.99
Money Management: Bet no more than 35% of the capital
Suggested Strategy: short stock for 5 Days
AIG on Friday hit a 3 month low after weeks of a downward trend. This gave way to traders today on Monday to take a good long position for a possible upward trend.
Exit : $52.55
Return 1.2% return