American Electric Power Reversal Soon?

Published on Tuesday, 10 August 2010 01:27 Written by Christopher Lynn

New York, August 10th (TradersHuddle.com) - Shares of American Electric Power Co., Inc. (NYSE:AEP) ended the trading session lower by $0.43 or -1.18% from its previous close. American Electric Power's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

American Electric Power Company, Inc.(NYSE:AEP) provides electric service, consisting of generation, transmission and distribution, on an integrated basis to their retail customers. AEP serves portions of the states of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.

American Electric Power's current stock range is defined by calculated support defined at $32.50 and by the resistance level at $36.82, which should be used by traders planning their trades.

Traders wanting to establish a position in American Electric Power stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current American Electric Power shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: