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.
I sold my Banco Santander Shares today after it rosed to $14.5.
I will look at Banco Santander again at $14.
I am still holding AES corporation. It is experiencing enormous selling pressure. However, I believe that Natural gas is rebounding and this would boost AES shares.
Alcoa Inc: Alcoa earnings is much poorer than my hope of 20cts. I am still holding Alcoa long and I will sell it at $15.5. The stock might experience a dip tomorrow.
Bank Of America Corp: I will sell Bank Of America Corp at $19.
I am rotating some of my portfolio to the weakest sector – Utilities. One of my favourite picks is AES corporation. I own both AES and CEG in my Utilities portfolio.
AES has suffered a massive sell off and short bet as the DARK spread is contracting and it would hurt their profit margins. This is because Natural Gas price has been going down while Coal price has been going up. Since electricity price is linked to Natural Gas, the Dark Spread has decreased significantly.
However, AES has hedged itself from such contraction as it has many facilities in other parts of the world. Besides, AES corporation has more than 60% of its assets in Natural gas and renewable energy. AES fundamentals are sound and the company would most probably do well with the new equity that they have raised,
CIC bought 1.6bln worth of AES shares at $12.60 each. Currently, AES is trading at a steep discount of only $11.28. Last Monday, AES issued an investor’s presentation highlighting the fact that the stock is undervalued and that it should be trading at $13.13.
I am sticking to my original target of $12.5. The technicals of AES looks good. AES has support at $11.25 as seen by the double doji. Selling pressure has been exhausted, the stock should continue its rebound tomorrow.
I added more AES Corporation at $11.25 today. The stock has retraced to its 61.8 FIB line and it closed to form a possible morning star which would only be confirmed tomorrow.
CIC bought this stock at $12.60, I think a fair value for AES is at that level.
I bought AES right at the open. After idling for 15minutes, the stock made a huge move upwards. Today, AES corporation issued a presentation for investors highlighting the fact that their stock has been severely undervalued by 15%. AES feels that its stock should be trading at $13.3 instead of $11.6.
Of course, many investors started piling up their portfolio with AES corporation. This is a utility stock and it has extremely low beta. However, the AES does not issue dividends. It is essentially a growth stock.
AES is much stronger than it was 10 years ago.
My short term target for AES is at $12.60
Today, it rose 2.48%. Quite a feat for a Utility company. The technicals show that AES is rebounding from its low of $10.75. The stock has traded at $15 last December. With Oil price going up, AES has no where to go but up.
I am looking to buy Micron Technology and AES. Yesterday, I drew a chart for Micron Technology and recommended to buy at $10. However, I realized that the BEARISH OUTSIDE BAR might be quite powerful and prevent MU from rising. In fact, if MU dips below the low of Thursday’s candle, then traders would be shorting MU regardless of the fundamentals.
Hence, I will watch how MU trades. If it drops below $10, I am looking to buy at $9.7
AES is an electric utility company that has been on a decline due to the drop of natural gas’s price.
However, there is a bullish outside bar created last Thursday. This could be the first bullish rebound for Natural Gas.
AES is a short term bullish play. Now it is trading at $11.30. I will exit at $12.5
