American Electric Power Company, Inc., a public utility holding
company, engages in the generation, transmission, and distribution of
electricity for sale to retail and wholesale customers. The company
generates electricity using coal and lignite, natural gas, nuclear, and
hydroelectric and other energy sources. It also supplies and markets
electric power at wholesale to other electric utility companies, rural
electric cooperatives, municipalities, and other market participants. As
of January 28, 2015, the company delivered electricity to approximately
5.3 million customers in 11 states. In addition, it transports liquid,
coal, and dry bulk commodities primarily on the Ohio, Illinois, and
lower Mississippi rivers. The company owns and leases approximately
2,300 barges, 37 towboats, and 18 harbor boats.
Take a look at the 1-year chart of American (NYSE: AEP) with the added notations:
AEP rallied strongly higher from its August low. Once the stock
peaked, and then fell lower into March, the following 3 months found AEP
hitting support at $54 (green). That same $54 support was also a
resistance back in July. Now that the stock looks like it may be falling
down to that support level again, traders should be able to expect some
sort of bounce. However, if the $54 support were to break, lower prices
should follow.
The Tale of the Tape: AEP has a key level of support
at $54. A trader could enter a long position at $54 with a stop placed
under the level. If the stock were to break below the support a short
position could be entered instead.
Please share this article
No comments:
Post a Comment