When a stock makes a decisive move on a daily and weekly chart, it does get the attention it deserves.
AES is a traditional Utility play trading at a very attractive dividend yield of 4.5%. But what really got everybody's attention this week:
1. ValueAct Capital Management's founder Jeffrey Ubben has been given a board seat on AES. The market is reading this as very bullish. It means AES is ready to transform and become solid renewable energy utilities play.
2. Siemens and AES have come together to offer Energy Storage Solution FLUENCE to the market. Energy Storage is one market that has huge potential in renewables space. Solar plus Storage is a deadly combination and Fluence hopes to address the market.
And yes the market is excited. We saw a breakaway Gap on the Chart and it looks like the start of a new BULLISH JOURNEY -
People who follow Price Action look for such triggers to enter a stock and hope that it will be rewarding. We will assess AES few months down the road.
Science of Stock Price Action
The Business of Investing is not same as Investing in business. You have to know how stocks make a move and try to capitalize on that opportunity. It means following fundamental newsflow and its impact on Price Action.
Price Action is one of the best ways to make good investment decisions. That's what I teach all the time.
If you find Price Action fascinating - then Science of Stock Price is a good place to start. It's a website designed to help you learn various Price Action concepts.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers