AEP closes higher for the 4th day in a row
American Electric Power Company Inc. (AEP) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, AEP ended the month 9.09% higher at 86.88 after gaining $0.81 (0.94%) today, slightly outperforming the S&P 500 (0.77%). Closing above Thursday's high at 86.07, the stock confirmed its breakout through the prior session high after trading up to $0.90 above it intraday.
Daily Candlestick Chart (AEP as at Jul 31, 2020):
Friday's trading range has been $1.81 (2.11%), that's slightly below the last trading month's daily average range of $2.26. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AEP.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 87.04 (R1).
American Electric shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the six 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 661 times, AEP closed higher 54.01% 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 57.03% with an average market move of 0.39%.