AES closes above its opening price after recovering from early selling pressure
The AES Corporation (AES) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AES ended the month 16.01% higher at 14.49 after gaining $0.15 (1.05%) today, slightly underperforming the S&P 500 (1.54%). Today's close at 14.49 marks the highest recorded closing price since June 8th. Trading up to $0.18 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 14.44, the share confirmed its breakout through the prior session high after trading up to $0.11 above it intraday.
Daily Candlestick Chart (AES as at Jun 30, 2020):
Tuesday's trading range has been $0.47 (3.3%), that's below the last trading month's daily average range of $0.62. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AES.
The market managed to close above the 100-day moving average at 14.32 for the first time since February 25th. When this moving average was crossed above the last time on October 17, 2019, AES gained 0.86% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
As prices are trading close to June's high at 15.08, upside momentum could accelerate should The AES mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for The AES. Out of 74 times, AES closed lower 54.05% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 66.22% with an average market move of -1.09%.