AES is in stage #2. The stock continues trading near its all-time highs and starts forming a top. If the economy hits a recession, then bonds may perform better, and investors will most likely buy bonds rather than utilities. Thus, I am expecting (if that happens) that AES may drop. At the current price, the stock is overpriced and not investable. If it, however, drops, I will be a buyer.
Fundamentally, the stock is overvalued and not worth buying more shares (it is not in my buy zone yet). If it goes lower again at some point in the future, it can be a good entry point, but not today.
The stock is now HOLD
This post was published in our newsletter to our subscribers on Saturday, December 9th, 2022. If you want to learn more about our stock technical analysis subscribe to our weekly newsletter.
Leave a Reply