Close to the 50 Day Moving Average: AES

Published on Wednesday, 20 June 2012 07:04 Written by TradersHuddle Wire

New York, June 20th (TradersHuddle.com) - AES Corporation (NYSE:AES) closed the trading day at $12.69, near its 50 day moving average that is set at $12.30. AES's price action is just above this important support level, providing a trading opportunity.

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.

The peaks and troughs algorithm shows calculated support at $11.64 and calculated resistance at $12.67. These levels should also be evaluated when planning trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on AES should look for evidence of buying near the 50 day moving average, and open this position as close as possible to this important level. Also, they need to consider the latest range defined by the peaks and troughs algorithm for insights on other key levels that might impact an upside or downside move.