Earnings Play: The AES Corporation

Look for an upside breakout from the 52-week high.

Uptrend 1

On Friday, before market, The AES Corporation (AES) is expected to report third quarter EPS of $0.43 compared to $0.48 last year on revenue of approximately $2.7 billion vs. $2.6 billion a year earlier. AES Corporation is a global power generation company and its expected move based on front-month options is 6.8%. The last time the company reported earnings the stock spiked 7.5%.

Looking at a daily chart, AES's stock price has been in an uptrend since mid-March and is currently sitting just below the 2020 high of 21.23. The RSI is over 65 and showing upside momentum. Price has been using its 20-day simple moving average as strong support since mid-June. Price will most likely continue to advance and breakout above the 2020 high of roughly 21.25. If price makes a new 2020 high, then its next target would be 24.25, a high last reached in 2007. On the other hand, if price slips then traders should look for a bounce off of the 19.00 support level. If price cannot manage to hold the 19.00 level, then it would be a bearish signal that could send price back down to 17.25.         

Source: GAIN Capital, TradingView

More from Earnings


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.