AES runs into sellers around 13.68 for the third day in a row
The AES Corporation (AES) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AES finished Thursday at 13.50 gaining $0.68 (5.3%), underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AES as at Mar 26, 2020):
Thursday's trading range has been $0.98 (7.58%), that's below the last trading month's daily average range of $1.43. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AES. Prices continued to consolidate within a tight trading range between 11.81 and 13.68 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on February 14th, AES gained 0.48% on the following trading day.
The market ran into sellers again today around 13.68 for the third trading day in a row after having found sellers at 13.59 in the previous session and at 13.42 two days ago.
Though the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for The AES. Out of 604 times, AES closed higher 49.83% 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 52.81% with an average market move of 0.37%.