Saturday, November 14, 2009

AES Corp (AES)

as an electricity producer, the direction of AES should provide clues to the viability of the supposed recovery. on the weekly chart we see volume start to turn up as the price softens. on the daily chart you got a pretty well defined neckline around 12.75. a break below that neckline targets the 50% retracement of the rally since March.

this could drop to 10ish in just a few days of trading, given a sufficiently panicky macro environment.

could rally again too I suppose, though I'm having trouble envisioning any astoundingly bullish scenarios.