AES closes lower for the 2nd day in a row
The AES Corporation (AES) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AES ended the week 4.17% higher at 12.24 after edging lower $0.07 (-0.57%) today, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 12.29, the share confirmed its breakout through the previous session low after trading up to $0.33 below it intraday.
Daily Candlestick Chart (AES as at May 22, 2020):
Friday's trading range has been $0.38 (3.09%), that's below the last trading month's daily average range of $0.58. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AES.
One bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on May 4th, AES gained 1.87% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for The AES. Out of 414 times, AES closed higher 53.14% 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 59.18% with an average market move of 0.99%.