AES Technical Analysis (NYSE:AES)
Technical analysis relies on the belief that future price movements of a stock can be forecasted through the study of historical market data and technical charts. Just by looking at the AES stock price one can't take a trading decision. A trader needs to find a chart pattern, which is a clear cut pattern formation on the AES stock chart which creates a trading signal.
View technical indicators like moving averages - SMA and EMA, and bollinger bands for AES. The technical analysis form of AES stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
AES Moving Average
Moving averages help predict the price direction of AES stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $13.1 is below the price of $13.94.
AES Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like AES. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. AES bollinger bands show that the stock price is $13.94, upper band is 13.5, lower band is 12.65, and the average is 13.08.
AES Moving Average Convergence Divergence or MACD
Two important concepts with respect to moving average convergence divergence or MACD are: crossovers and divergence. When the MACD rises above the signal line, it typically indicates a bullish trend and most likely the stock prices will go up. The AES MACD indicator is below 0 indicating a bearish trend.
AES Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of AES stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.