AES (AES) has fallen more than 12% since its multiyear high of above $16 last month. Utilities showed similar weakness, and the Utilities Select Sector SPDR ETF (XLU) fell almost 10% in this period. AES, one of the smallest constituents of XLU, is currently trading at $14.2, approximately 6% below its 50-day moving average level and 4% above its 200-day moving average level. Its 200-day level around $13.6 might act as a vital support for AES stock in the near future. Its 50-day moving average close to $15.1 will likely act as a resistance.
AES Corporation stock is one of the top rallied stocks among utilities in 2018. It rose 33%, notably outperforming broader utilities.
Relative strength index
AES stock is currently trading at an RSI (relative strength index) of 35. A stock is considered oversold when its RSI falls below 30, and it is overbought when its RSI rises above 70. Extreme RSI values suggest an impending reversal in a stock’s direction.
The short interest in AES stock increased a notable 21% on December 14. On November 30, the shorted shares in AES were 10.8 million. AES’s total shorted shares increased to 13.1 million on December 14.
A notable rise in AES’s short interest could suggest that more investors expect the stock to fall from the current price level. The short interest indicates the number of a company’s shares that have been sold short and not squared off yet.