Shares of AIG (AIG) - Get Report finished Wednesday's session with an impressive 1.7% gain. This breakout-type move extends the stock's rally off the September lows to 3.5%. Despite this healthy rally, AIG is still range-bound, but the potential for an upside breakout is growing.

Investors should take on a more positive view of the stock in the near term as it remains in a fairly low-risk buy zone.

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A few days after AIG's huge earnings-inspired breakout in early August, the stock began to consolidate. The news-sparked surge had driven shares past the May peak but was unable to maintain the momentum. Over the next seven weeks, AIG traded in a narrow, sideways range as it digested the major rally off the Brexit low. This healthy action held the 50-day moving average during the last two weeks, providing the stock with very solid footing that may soon result in an upside resolution.

In the near term, AIG investors should consider the stock a low-risk buy between last week's high near $59 and this week's low of $57.90. A close back below $57 would violate the September low, likely leading to more sideways trade. On the upside, AIG still has an important hurdle to clear. Once past $60, the stock will have taken out the August high and will have little in the way of reaching new 2016 highs.

This article is commentary by an independent contributor. At the time of publication, the author was long AIG.