In the Lightning Round of Mad Money last night, Jim Cramer was bullish on AES Corp. (AES) . Let's check the charts and indicators to see where AES might be heading in the weeks ahead.
In this daily bar chart of AES, below, we can see that prices are above the rising 50-day simple moving average line as well as the rising 200-day line. A bullish golden cross of these two averages can be seen way back in April. The On-Balance-Volume (OBV) line has been trending upwards since late March but has leveled off the past two months or so. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since late September and looks to be turning upward again.
In this weekly bar chart of AES, below, we can see a long drift lower before prices resumed their uptrend again. This year prices have rallied and are above the rising 40-week moving average line. The weekly OBV line has strengthened all year and stands at a new three-year high. The MACD oscillator is above the zero line and probably headed higher.
In this long Point and Figure chart we can see that AES is close to an important upside breakout at $17.50. A price target of $27.50 is being projected.
Bottom line strategy: Cramer is bullish. The charts are bullish. Stay long and risk a close below $13.
