AES Corp. traded in a large trading range mostly between $9 (U.S.) and $14 for about four years (dashed lines). The subsequent rise to $15.54 confirmed investor interest and the breakout from the large trading range (A).
Subsequently, AES settled in a large descending triangle formation (dotted lines) suggesting anxious sellers, but strong buying interest near around $13.50. Recent price action above the top of this pattern indicates renewed investor interest and the resumption of the long-term up-trend (B). Only a decline below $14-14.25 would reverse the positive long-term status.
Point & Figure measurements provide targets of $17 and $20. Higher targets are visible.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.