AES Close to Support

Published on Monday, 01 February 2010 08:46 Written by TradersHuddle Staff

New York, 31^st (TradersHuddle.com) - Shares of AES Corporation (NYSE:AES) are trading very close to calculated support at $12.47 with current price action closing at just $12.63 places the stock price near levels where traders will start paying attention.

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 $12.47 and by the resistance level at $14.24, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to AES's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $14.24 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.