When the Price of American Electric Power AEP Talks, People Listen

January 22, 2022, 22:15 pm ET, BY Christie- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

This is not EF Hutton, but it could be more #powerful.  A picture speaks a thousand words, they say, and the #priceaction of American Electric Power (NYSE: AEP) tells an important story.  The movement tells us where investors perceive value, or the lack of it, and if we pay attention we can capture opportunity.  The data below for AEP can be used as an example, and demonstrate how to do this for other stocks too.  This data was current at the time of publication, but it is not updated in real time here. If you want real time updates, or data on a different stock, please get one here Unlimited Real Time Reports. 

Longer Term Trading Plans for AEP

• Buy AEP slightly over 86.57 target 90.62 stop loss @ 86.32 Details

The technical summary data tells us to buy AEP near 86.57 with an upside target of 90.62. This data also tells us to set a stop loss @ 86.32 to protect against excessive loss in case the stock begins to move against the trade. 86.57 is the first level of support below 89.97 , and by rule, any test of support is a buy signal. In this case, support 86.57 is being tested, a buy signal would exist.

• Short AEP under 90.62, target 86.57, stop loss @ 90.88 Details

The technical summary data is suggesting a short of AEP as it gets near 90.62 with a downside target of 86.57. We should have a stop loss in place at 90.88though. 90.62 is the first level of resistance above 89.97, and by rule, any test of resistance is a short signal. In this case, if resistance 90.62 is being tested, a short signal would exist.

Swing Trading Plans for AEP

• Buy AEP slightly over 90.20, target 90.62, Stop Loss @ 89.94 Details

If 90.20 begins to break higher, the technical summary data tells us to buy AEP just slightly over 90.20, with an upside target of 90.62. The data also tells us to set a stop loss @ 89.94 in case the stock turns against the trade. 90.20 is the first level of resistance above 89.97, and by rule, any break above resistance is a buy signal. In this case, 90.20, 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 90.20, target 86.57, Stop Loss @ 90.46. Details

The technical summary data is suggesting a short of AEP if it tests 90.20 with a downside target of 86.57. We should have a stop loss in place at 90.46 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, 90.20, 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 90.20, target 90.62, Stop Loss @ 89.99 Details

If 90.20 begins to break higher, the technical summary data tells us to buy AEP just slightly over 90.20, with an upside target of 90.62. The data also tells us to set a stop loss @ 89.99 in case the stock turns against the trade. 90.20 is the first level of resistance above 89.97, and by rule, any break above resistance is a buy signal. In this case, 90.20, 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 90.20, target 86.57, Stop Loss @ 90.41. Details

The technical summary data is suggesting a short of AEP if it tests 90.20 with a downside target of 86.57. We should have a stop loss in place at 90.41 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, 90.20, 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 January 22:

Term →	Near	Mid	Long
Rating	Strong	Strong	Neutral
P1	0	0	82.28
P2	90.05	90.20	86.57
P3	91.05	91.62	90.62

Support and Resistance Plot Chart for AEP

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