Close to the 50 Day - AES

Published on Friday, 27 August 2010 07:44 Written by Christian Paolinetti

New York, August 27th (TradersHuddle.com) - Shares of AES Corporation (NYSE:AES) closed the trading day at $10.40 close to its 50 day moving average currently set at $10.26. AES's price action is just above this important support level translating into 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.

Looking at peaks and troughs horizontal support and resistance levels, we can see current calculated support at $10.13 and calculated resistance at $11.05. These levels should also be evaluated by traders when planning their trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on AES will be looking at the price action for evidence of buying near the 50 day moving average, and opening a position as close as possible to this important level. Also traders will be looking at the latest price action, via the stocks current range previously defined for insights of other key levels that might affect their upside or downside.