AEP pushes through Thursday's high
American Electric Power Company Inc. (AEP) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
AEP finished the week 0.45% higher at 78.78 after gaining $1.41 (1.82%) today, notably outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 77.82, the share confirmed its breakout through the prior session high after trading up to $1.02 above it intraday.
Daily Candlestick Chart (AEP as at May 22, 2020):
Friday's trading range has been $1.49 (1.93%), that's below the last trading month's daily average range of $2.09. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower 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 78.27 (now S1), which is likely to act as support going forward. The last time this happened on May 15th, AEP gained 1.85% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 80.70 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 76.89 where further sell stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for American Electric. Out of 665 times, AEP closed higher 53.53% 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 60.45% with an average market move of 0.54%.