AES dominated by bears dragging the market lower throughout the day


The AES Corporation (AES) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team

Highlights

AES tanks -0.88% on low volume
AES dominated by bears dragging the market lower throughout the day
AES finds buyers again around 20.32
AES closes within previous day's range after lackluster session

Overview

AES ended the week -0.59% lower at 20.38 after tanking $0.18 (-0.88%) today on low volume, but still slightly outperforming the S&P 500 (-0.9%). This is the biggest single-day loss in over three weeks. The last time we've seen such an unusually strong single-day loss on December 17, 2019, AES actually gained 1.32% on the following trading day. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.

Daily Candlestick Chart (AES as at Jan 24, 2020):

Daily technical analysis candlestick chart for The AES Corporation (AES) as at Jan 24, 2020

Friday's trading range has been $0.24 (1.17%), that's below the last trading month's daily average range of $0.27. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AES.

During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving higher in the prior session, the share closed lower but above the previous day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.

Prices are trading close to the key technical support level at 20.31 (S1). After having been unable to move lower than 20.31 in the prior session, the market found buyers again around the same price level today at 20.32.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Selling might speed up should prices move below the close-by swing low at 20.31 where further sell stops could get activated.

Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for The AES. Out of 287 times, AES closed higher 54.01% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.14% with an average market move of 0.90%.


Market Conditions for AES as at Jan 24, 2020

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