American Electric Power near Key Resistance Area

Published on Monday, 02 August 2010 07:04 Written by Danny Miller

New York, August 2nd (TradersHuddle.com) - Shares of American Electric Power Co., Inc. (NYSE:AEP) are trading very close to calculated resistance at $36.82 with the current price action closing at just $35.98 placing the stock near levels that make it difficult to buy.

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 current calculated support defined at $32.50 and by the resistance level at $36.82, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for American Electric Power, as the stock is well above support, however, as the stock pulls back towards $32.50 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $36.82 then traders will get an opportunity to enter American Electric Power stock by establishing a position as the stock moves to a higher range.