American Electric Power Company, Inc. is an American energy company. Its core business consists of the production, transmission and sale of electricity. AEP was founded in 1906 and has its headquarters in Columbus, Ohio. The following analysis will expand on the company’s stock from a technical point of view.
Since the high in December of last year, the stock price has been heading south. The previous upward trend was clearly broken, and even the SMA 200 was not able to provide support. In the course of this sell-off, a new downward trend formed, whose movement has currently corrected to approx. 50%.
In order to find a more lucrative entry in the short direction, a further correction would be desirable to start with. Following this, one should wait for a clear trend reversal in the lower timeframe of the hourly chart (blue arrow). An entry can then be made either at the point 2 or in the subsequent correction, with a stop on the point 3 that will have formed by then.
The target areas are located at approx. 63.50 USD and 58.50 USD (green zones). If the value clearly and sustainably rises above 70 USD (red line), the short scenario should be abandoned for the time being.
Before trading, one should take news from the environment and from the company into account. Similarly, one should also observe the overall market.
Disclosure of possible conflicts of interest: at the time of publishing this analysis, the author is not invested in the securities or underlyings discussed.
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