Above Resistance - American Electric Power

Published on Thursday, 22 July 2010 19:08 Written by Danny Miller

New York, July 22nd (TradersHuddle.com) - Shares of American Electric Power Co., Inc. (NYSE:AEP) closed the trading session at $35.79 just above calculated resistance at $35.33 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

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 stock was trading in a well defined range with support at $32.50 and resistance at $35.33, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that American Electric Power's stock is still near the broken resistance level, traders will be focusing on $35.33 to see if the stock holds the breakout without rolling over.