American Electric Power Approaching its 50 Day

Published on Friday, 12 March 2010 08:16 Written by Christopher Lynn

New York, March 12th (TradersHuddle.com) - Shares of American Electric Power Co., Inc. (NYSE:AEP) closed the trading session at $34.22 near its 50 day moving average currently set at $34.57. American Electric Power's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

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.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $32.68 and calculated resistance at $36.25. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by American Electric Power shares.

Traders should evaluate their trade if they want to establish a position on American Electric Power given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.