AES CORP is setting up nicely for a breakout.

Our stock screener has spotted AES CORP (NYSE:AES) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:AES.

Technical Analysis Observations

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 8 out of 10 to AES. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, AES is only an average performer.

• The long and short term trends are both positive. This is looking good!
• AES is part of the Independent Power and Renewable Electricity Producers industry. There are 40 other stocks in this industry. AES outperforms 85% of them.
• AES is currently trading in the upper part of its 52 week range. This is a good signal, certainly because the S&P500 Index is currently trading in the lower part of its 52 week range.
• In the last month AES has a been trading in the 23.24 - 27.17 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the yearly performance of all stocks, we notice that AES is one of the better performing stocks in the market, outperforming 91% of all stocks. However, this overall performance is mostly based on the strong move around 4 months ago.

Why is NYSE:AES a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:AES scores a 8 out of 10:

Besides having an excellent technical rating, AES also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 27.43. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 25.3, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NYSE:AES?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Of course, there are many ways to trade or not trade NYSE:AES and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout analyzer.