AES (AES), the most geographically diversified utility stock in the Utilities Select Sector SPDR ETF (XLU), has been one of the biggest losers among peers this year. Whereas AES stock has fallen nearly 10% so far this year, XLU has risen more than 16%.
On December 14, 2017, AES stock was trading 2% and 5% below its 50-day and 200-day moving averages, respectively, highlighting weakness in AES stock. Its 50-day moving average of ~$10.80 is expected to act as a resistance going forward. The stock is currently trading at $10.70.
Relative strength index
AES stock’s RSI (relative strength index) score seems stable, currently standing at 43. RSI scores below 30 suggest that a stock is trading in the “oversold” zone, whereas scores above 70 suggest that a stock is trading in the “overbought” zone. Extreme RSI values might indicate an imminent change in stock price direction.
According to latest reports, short interest in AES rose 24% on November 30, 2017. While total shorted shares in AES stood at 8.2 million on November 15, they rose to 10.3 million on November 30, 2017. A rise in a stock’s short interest could mean that more investors expect its price to fall.