| AES is a holding company. Through its subsidiaries, Co. operates a portfolio of electricity generation and distribution businesses. The first business line is generation, where Co. owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, and other intermediaries. The second business line is utilities, where Co. owns and/or operates utilities to generate or purchase, distribute, transmit and sell electricity to end-user customers in the residential, commercial, industrial and governmental sectors within a defined service area. In certain circumstances, Co.'s utilities also generates and sells electricity on the wholesale market. |
When researching a stock like AES, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from AES Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for AES stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the AES 200 day moving average ("AES 200 DMA"), while one of the most popular "shorter look-backs" is the AES 50 day moving average ("AES 50 DMA"). A chart showing both of these popular moving averages is shown on this page for AES. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the AES 200 DMA and the AES 50 DMA, we get a moving average convergence divergence indicator ("AES MACD"). The AES MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart).