New York, 29^th (TradersHuddle.com) - Shares of AES Corporation (NYSE:AES) closed the trading session at $12.68 below calculated support at $13 breaking the stock technically, raising concerns by investors, as the move might trigger more selling

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 stock was trading in a well defined range with support at $13 and resistance at $14.24; given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous support becomes resistance, as the new range gets defined, however, given that AES's stock is still near the broken support, traders will be focusing on $13 to see if the stock can bounce back and return to its previous range.

Traders wanting to establish a short position in AES can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes at previous support of $13. For traders wanting to establish a long position the current setup is to wait for the stock to get back to calculated support, given that the stock is still near from this level.