AES finds support at 20-day moving average
The AES Corporation (AES) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AES ended the month 5.11% higher at 15.23 after losing $0.19 (-1.23%) today, strongly underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AES as at Jul 31, 2020):
Friday's trading range has been $0.43 (2.82%), that's slightly below the last trading month's daily average range of $0.48. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AES.
Four candlestick patterns are matching today's price action, the Dragonfly Doji and the Southern Doji which are both known as bullish patterns, one bearish pattern, the Hanging Man and one neutral pattern, the Doji. The last time a Southern Doji showed up on March 13th, AES actually lost -15.46% on the following trading day.
After trading as low as 14.83 during the day, the market found support at the 20-day moving average at 15.02.
Though The AES is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the close-by swing high at 15.63 where further buy stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for The AES. Out of 274 times, AES closed higher 52.55% 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 59.12% with an average market move of 0.89%.