AEP shortPosition: Short
Entry Price: $86.54
Target Price : $77.26
Stop loss: $89.53
RSI is downward-sloping after having touched its resistance level of 70, threshold for overbought stock
STOCH signals an overbought stock
ADX is around 20 but D+ line is now downward sloping, after being been above D- since the segment DC started
The pattern respects the Fibonacci levels of the bearish cipher pattern. RSI has reached its resistance level of 70 and is now downward sloping, confirming the trend. The stock is in the utility sector, which has showed good 1-week and 1-month performance, but the relative strength indicator shows this stock is performing worse than the S&P500. A market order is suggested, with stop loss at resistance level and profit target at the support level already tested multiple times.
No financial advice.
AEP trade ideas
AEP Trendline BreakNASDAQ:AEP had a nice trendline break on Thursday followed by a retracement bar giving the perfect opportunity for a trade entry.
Entry above Friday's high at 85.68
Profit target is just under the high on 4/20/21 at 90.52
Stop loss under Friday's low at 84.74
Risk/Reward ratio is 5.15
AEP , Technical Long American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States.
This is a technical entry , trading a range here . Good risk to reward .
Company has good margins, high institution ownership and a low short float , which should help this to bounce/hold imo. Quick ratio ,however, is only 0.30 (not too stable) . That's OK for me though because I am only trading a range in this instance and I am happy with the risk.
Good luck ~
AEP long time accumulation! American Electric Power is one of the largest regulated utilities in the United States, providing electricity generation, transmission, and distribution to more than 5 million retail customers in 11 states. About 43% of AEP's of capacity is coal, with the remainder from a mix of natural gas (29%), renewable energy and hydro (18%), nuclear (8%), and demand response (2%). Vertically integrated utilities, transmission and distribution utilities, competitive transmission, and unregulated generation and marketing support earnings.
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