American Electric Power AEP Investment Analysis

July 09, 2021, 22:45 pm ET, BY Quentin W.- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

With an objective approach to American Electric Power (NYSE: AEP), Stock Traders Daily attempts to go with the flow of the market by utilizing a combination of market analysis and stock analysis.

Warning:

This is a static report, the data below was valid at the time of the publication, but support and resistance levels for AEP change over time, so the report should be updated regularly.  Real Time updates are provided to subscribers.  Unlimited Real Time Reports.

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Instructions:

The rules that govern the data in this report are the rules of Technical Analysis.  For example, if AEP is testing support buy signals surface, and resistance is the target.  Conversely, if resistance is being tested, that is a sign to control risk or short, and support would be the downside target accordingly.  In each case, the trigger point is designed to be both an ideal place to enter a position (avoid trading in the middle of a trading channel), and it acts as a level of risk control too.

Swing Trades, Day Trades, and Longer term Trading Plans:

This data is refined to differentiate trading plans for Day Trading, Swing Trading, and Long Term Investing plans for AEP too.  All of these are offered below the Summary Table.

Longer Term Trading Plans for AEP

• Buy AEP slightly over 84.44 target 89.28 stop loss @ 84.2 Details

The technical summary data tells us to buy AEP near 84.44 with an upside target of 89.28. This data also tells us to set a stop loss @ 84.2 to protect against excessive loss in case the stock begins to move against the trade. 84.44 is the first level of support below 85.39 , and by rule, any test of support is a buy signal. In this case, support 84.44 is being tested, a buy signal would exist.

• Short AEP under 89.28, target 84.44, stop loss @ 89.54 Details

The technical summary data is suggesting a short of AEP as it gets near 89.28 with a downside target of 84.44. We should have a stop loss in place at 89.54though. 89.28 is the first level of resistance above 85.39, and by rule, any test of resistance is a short signal. In this case, if resistance 89.28 is being tested, a short signal would exist.

Swing Trading Plans for AEP

• Buy AEP slightly over 86.35, target 89.28, Stop Loss @ 86.1 Details

If 86.35 begins to break higher, the technical summary data tells us to buy AEP just slightly over 86.35, with an upside target of 89.28. The data also tells us to set a stop loss @ 86.1 in case the stock turns against the trade. 86.35 is the first level of resistance above 85.39, and by rule, any break above resistance is a buy signal. In this case, 86.35, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short AEP near 86.35, target 85.09, Stop Loss @ 86.6. Details

The technical summary data is suggesting a short of AEP if it tests 86.35 with a downside target of 85.09. We should have a stop loss in place at 86.6 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 86.35, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for AEP

• Buy AEP slightly over 86.05, target 86.35, Stop Loss @ 85.85 Details

If 86.05 begins to break higher, the technical summary data tells us to buy AEP just slightly over 86.05, with an upside target of 86.35. The data also tells us to set a stop loss @ 85.85 in case the stock turns against the trade. 86.05 is the first level of resistance above 85.39, and by rule, any break above resistance is a buy signal. In this case, 86.05, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short AEP near 86.05, target 85.31, Stop Loss @ 86.25. Details

The technical summary data is suggesting a short of AEP if it tests 86.05 with a downside target of 85.31. We should have a stop loss in place at 86.25 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 86.05, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

AEP Ratings for July 09:

Term →	Near	Mid	Long
Rating	Neutral	Neutral	Neutral
P1	0	0	79.75
P2	85.31	85.09	84.44
P3	86.05	86.35	89.28

Support and Resistance Plot Chart for AEP

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