AIG Analysis for 06.08.2008

AMERICAN INTERNATIONAL GROUP INC. - AIG

Monthly chart shows increasing selling pressure with no buy signal in sight. The bears have managed to break key support and LIS of $43, where now "old support becomes new resistance". Look for lower still in the days/weeks to come.

Weekly chart better shows the "old support becomes new resistance", as the early bulls were met with bears who were only too eager to sell to them. Price is well below all key moving averages. No buy signal in place on this timeframe.

Daily chart shows that Friday's trading session created a kicker signal, which indicates a major change in investor sentiment, as the bears gapped down the price at the open in their haste to exit their positions. So far, we have sell signals on all three timeframes -- monthly, weekly and daily. Is this going to blow up like Bear Stearns?