AEP closes higher for the 3rd day in a row
American Electric Power Company Inc. (AEP) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AEP ended Thursday at 81.80 surging $8.51 (11.61%) on low volume, significantly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 76.31, American Electric confirmed its breakout through the previous session high after trading up to $6.57 above it intraday.
Daily Candlestick Chart (AEP as at Mar 26, 2020):
Thursday's trading range has been $9.63 (13.11%), that's above the last trading month's daily average range of $7.08. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for AEP.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 73.53 (now S1), which is likely to act as support going forward. The last time this happened on March 17th, AEP actually lost -3.20% on the following trading day. Prices are trading close to the key technical resistance level at 87.15 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for American Electric. Out of 669 times, AEP closed higher 53.66% 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 57.10% with an average market move of 0.33%.