Twitter Ticker ($AIG)

• Charles Amadeus
• September 22nd, 2009

American International Group continues to be a StockTwits favorite as the government sponsored insurer gains +20% in Monday’s trading. Continued broad market strength has eased the pressure on $AIG in the past few months, and the chances of recovery look increasingly favorable.

Trading in a primary and secondary uptrend above a rising upper Bollinger, $AIG looks poised for further gains. After forming a triangle breakout on September 21st, a stop just below the support at the 40 level would be wise.

The market has been consolidating for a few days, and there is a lack of momentum. Keep your stops updated and be prepared for any breakdown that may occur. Though the market remains technically strong, there are divergent breadth indicators that suggest underlying weakness.