AES runs into sellers around 18.13 for the third day in a row
The AES Corporation (AES) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
AES ended Wednesday at 18.06 gaining $0.27 (1.52%), strongly outperforming the S&P 500 (-0.46%). 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 Sep 16, 2020):
Wednesday's trading range has been $0.40 (2.25%), that's slightly below the last trading month's daily average range of $0.45. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AES. Prices continued to consolidate within a tight trading range between 17.62 and 18.14 where it has been caught now for the last three trading days.
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. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 18.34 (R1). The share ran into sellers again today around 18.13 for the third trading day in a row after having found sellers at 18.14 in the prior session and at 18.08 two days ago. The last time this happened on September 1st, AES actually gained 1.51% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 18.14 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 17.62 where further sell stops might get triggered. As prices are trading close to September's high at 18.34, upside momentum could speed up should the market 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 "High close to previous High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for The AES. Out of 611 times, AES closed higher 50.57% 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 53.68% with an average market move of 0.49%.