The downward pressure on AES Corporation has subsided. The stock managed to climb 3% today. It is now touching the 50SMA line. Previously, AES was sold off when it hit that line so we have to watch this stock tomorrow and sell it if there is significant downward pressure again.
The tremendous support seems to mirror that of United States Steel.
2 comments:
Not to get into a discussion of semantics, but what exactly is meant by, "The tremendous support..." with respect to X and AES? Is there "hidden" futures' volume lurking... certainly nothing seems exceptional when it comes to daily volumes in the options/shares, and the price developments seem part of a volatility pattern - AES being the more volatile at the moment. Response?
I meant that AES was facing enormous Shorting pressure in the last 5 trading days as the chart pattern actually allow AES to fall further below. However, due to the strong support, I am convinced that AES does not want to go lower than $11.
As for United Steel, the stock has been supported strongly above $63.8 for the past 5 days, however, today X was brutally shorted and sold off. Nevertheless, bulls will come back very soon.
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