Shares of Ameren (AEE) are trading strong and traders and investors should go with the long side of this name as further gains look likely.
Looking at this first chart of AEE, above, we can see that the stock staged a big rally last month. After touching the 200-day simple moving average, AEE rallied, or rather soared, up and over its October highs. Impressive. Also note in this chart that the On-Balance-Volume (OBV) line has been rising since July, suggesting that the recent breakout was building for a while and is likely sustainable. In the lower panel, I can see the Moving Average Convergence Divergence (MACD) oscillator turning up above the zero line as the slope of the 50-day and 200-day averages are turning positive.
This longer-term chart of AEE, above, is "in gear" on the upside, with prices above the rising 40-week moving average, a rising OBV line and a bullish MACD oscillator. A test of the $48 high is expected in the days and weeks ahead and further gains into the mid-$50s would not surprise us.