AEP closes higher for the 2nd day in a row
American Electric Power Company Inc. (AEP) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AEP finished the week 2.39% higher at 103.76 after gaining $0.91 (0.88%) today on low volume, outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing above Thursday's high at 103.18, the market confirmed its breakout through the prior session high after trading up to $0.70 above it intraday.
Daily Candlestick Chart (AEP as at Feb 14, 2020):
Friday's trading range has been $0.96 (0.93%), that's slightly below the last trading month's daily average range of $1.13. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for AEP.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on January 30th, AEP gained 0.12% on the following trading day.
Though the share is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 104.97, upside momentum might accelerate should American Electric be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for American Electric. Out of 347 times, AEP closed higher 54.76% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.77% with an average market move of 0.29%.