Insurance Stock Due for a Short-Term Rebound

Core Viewpoint - American International Group Inc (AIG) stock is experiencing a pullback from its late August peak, facing resistance at the $84 level, which previously served as support in June. However, there are indications that the stock may rebound towards this level soon [1]. Group 1 - AIG is currently within 0.75 of the 260-day trendline's 20-day average true range (ATR), having spent over 80% of the last 10 days and the last two months above this level. Historically, similar conditions have led to an increase in stock price 86% of the time, with an average gain of 4.5% one month later [2]. - A move from the current price of $78.52 to a similar magnitude would position AIG just above $82 [2]. Group 2 - Options trading for AIG indicates low volatility expectations, as reflected by the Schaeffer's Volatility Index (SVI) of 21%, which is in the low 8th percentile of its annual range [4].