Skip to main content

American International Group (AIG) was downgraded by TheStreet's quantitative service today.

Naturally, I was interested in what the charts and technical indicators looked like. Are both saying the same "story" or is there a divergence between these two methods?

Let's check the latest charts and indicators.

Image placeholder title

In this daily bar chart of AIG, above, we can see how prices sold off sharply in August. AIG broke below both the 50-day and 200-day moving averages. Both are pointing down with negative slopes. Prices briefly broke the April lows and rebounded, but it looks like prices are rolling over to the downside again.

The On-Balance-Volume (OBV) line has been weakening since June and suggests that sellers of AIG have been more aggressive for several months. In the lower panel is the momentum study showing that the pace of the decline is slowing.

Image placeholder title

In this weekly chart of AIG, above, we can see prices are below the declining 40-week moving average line. The weekly OBV line has been declining the past two months and the MACD oscillator is below the zero line for a sell signal.

Image placeholder title

In this Point and Figure chart of AIG, above, we can see the trade at $58.06 broke the prior low at $58.65 and opened the way to a bearish "count" (price forecast) of $49.72.

Bottom line: The price of AIG turned down in early August and does not look done or over yet. Prices have bounced recently but with the majority of the indicators in a bearish mode, I would anticipate further declines for AIG.

Click here to subscribe to Quant Ratings, where you can read our full report on AIG or more than 4,000 other stocks that our service rates in real time every market day.

However, please note that our Quant Ratings service assesses stocks using a proprietary computer model that runs a variety of factors through quantitative and technical analysis. Ratings do not necessarily reflect the opinions of Jim Cramer or other columnists, who may use different criteria to grade stocks.

This column originally appeared at 1:54 p.m. ET today on Real Money, our premium site for active traders. Click here to get great columns like this from Bruce Kamich, Jim Cramer and other writers even earlier in the trading day.

Employees of TheStreet are restricted from trading individual securities.