AES near Key Resistance Area

Published on Tuesday, 05 July 2011 08:56 Written by Christopher Lynn

New York, July 5th (TradersHuddle.com) - Shares of AES Corporation (NYSE:AES) are trading very close to calculated resistance at $13.00 with the current price action closing at just $12.98 placing the stock near levels that make it difficult to buy.

AES Corporation (NYSE:AES), together with its subsidiaries, engages in the generation and distribution of electricity in Asia, North America, Europe, Latin America, and Africa. The Company sells electricity under long term contracts and serves customers under its regulated utility businesses.The company generates electricity through various resources, including coal, gas, and fuel oil, as well as hydro, wind, and solar.

AES's current stock range is defined by current calculated support defined at $12.23 and by the resistance level at $13.00, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for AES, as the stock is well above support, however, as the stock pulls back towards $12.23 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $13.00 then traders will get an opportunity to enter AES stock by establishing a position as the stock moves to a higher range.