AES CORP is setting up nicely for a breakout.

A possible breakout setup was detected on AES CORP (NYSE:AES) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:AES.

What is the technical picture of NYSE:AES telling us.

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.

Overall AES gets a technical rating of 9 out of 10. Both in the recent history as in the last year, AES has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that AES is one of the better performing stocks in the market, outperforming 92% of all stocks.
• AES is one of the better performing stocks in the Independent Power and Renewable Electricity Producers industry, it outperforms 90% of 41 stocks in the same industry.
• AES is currently trading near its 52 week high. This is a good sign, certainly because the S&P500 Index is not trading near new highs.
• In the last month AES has a been trading in the 25.50 - 28.57 range, which is quite wide. It is currently trading near the high of this range.

How does the Setup look for NYSE:AES

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:AES this score is currently 9:

AES has an excellent technical rating and 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 28.49. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 28.16, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for AES in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading breakout setups.

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Our Breakout analyzer lists more breakout setups and is updated daily.