American International Group Inc (NYSE:AIG) stock is still pulling back from its late August peak after running into pressure at the $84 level, which provided support in June. While AIG may have trouble overcoming that particular obstacle, a signal flashing shows it could run back toward it very soon.
Per Schaeffer's Senior Quantitative Analyst Rocky White, AIG is within 0.75 of the 260-day trendline's 20-day average true range (ATR), after spending at least 80% of the last 10 days and 80% of the last two months above it. This has happened seven other times over the past three years, after which the equity was higher one month later 86% of the time, averaging an 4.5% gain. A move of similar magnitude from the security's current perch at $78.52 would put it just above $82.
When weighing in on American International Group stock's next move, options look like a good way to go. Options traders are pricing in low volatility expectations at the moment, per AIG's Schaeffer's Volatility Index (SVI) of 21%, which ranks in the low 8th percentile of its annual range.
