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- The AES Corporation stock price has declined by over 48% in 2023.
- Morgan Stanley maintained its “OVERWEIGHT” rating on the AES Corporation stock.
- The AES Corporation is expected to release its earnings report on 3 November 2023.
Since the start of the year 2023, the AES Corporation (NYSE: AES) stock price has continuously fallen and sellers have aggressively created short positions on every rise. The first two quarters have witnessed a complete dominance of bears. The bulls showed some strength in March and lifted the price sharply but sellers snatched back control and the price continued to decline.
The selling was interrupted in June, as the stock price was trying to revive from the lower level and bulls were gradually finding their way. The stock price has risen slightly in two months at a much slower pace. This indicates that the bears were not out of the game. From a different perspective, this was only a minor correction before the stock price resumed its downtrend.
Morgan Stanley has maintained its previous outlook of “OVERWEIGHT” on AES stock. The rating firm has also reduced the target price of the stock from $29 to $26. It is expected that the AES Corporation is going to release its next earnings report on 3 November 2023. The future direction of the stock price relies on the outcome of its earnings.
What the Price Action Conveys About the AES Stock Chart
The AES stock price has formed a downward-sloping trendline on the daily chart. The stock price has tested this trendline thrice which confirms that the trendline is strong and can be effective in the future. It is currently present near $19 and can provide resistance to the price.
If we observe the recent trend of the stock, the stock has sharply surged upward. This indicates that the buyers are strongly present at the lower level of $11.35 and this can be a crucial support for the stock price. Apart from this, the stock has created a small support at $12.75. The major hurdles the stock will face are near the levels of $17.48 and $19.50.
A Quick Glimpse of the EMA and RSI
The exponential moving average (EMA) shows the trend of the stock and the relative strength index (RSI) shows the strength of the trend.
The AES stock price is currently inching closer to the 50-day EMA and it can face some resistance at that level. It is currently present near $15.44. The relative strength index (RSI) is curving at 56.34 which shows that the current trend is gaining some strength.
Conclusion
The AES Corporation will declare its earnings soon and the price will react accordingly. If the company reports earnings that are not up to the mark of the estimates, then the stock price can fall. If it posts earnings that meets or surpasses the market estimation, then the stock price can rise further.
Technical level
- Resistance – $17.48 and $19.50
- Support – $12.75 and $11.35
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
