• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Energy

American Electric Power Pays a Nice Dividend, Has Upside on the Charts

Let's check out the charts and indicators.
By BRUCE KAMICH
Aug 17, 2018 | 08:31 AM EDT
Stocks quotes in this article: AEP

Thursday night on "Mad Money" our own Jim Cramer spoke with Nick Akins, chairman, president and CEO of American Electric Power (AEP) . This was part of his "Executive Decision" segment and Cramer called AEP his favorite utility. The fundamentals of the company were discussed so this morning let's check out the charts and indicators to round out the analysis.

In this daily bar chart of AEP, below, we can see a possible "lopsided double bottom pattern." There is a low in February near $63 and then another low in June just below $63. Prices rallied strongly from June into July and are now above the still declining 200-day moving average line.

AEP is above the rising 50-day average line and that shorter average is close to moving above the slower 200-day average for what is commonly called a golden cross. Some moving average followers use that crossover as a buy signal.

The daily On-Balance-Volume (OBV) line followed the price action and made lows in February/March and May/June. The rise in the OBV line since June has lifted the indicator above its April peak.

The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line and poised to follow prices higher.

In this weekly bar chart of AEP, below, we can see the double bottom and the rally above the declining 40-week moving average line.

The weekly OBV line shows a rise from June and that tells us that buyers of AEP have been more aggressive.

The weekly MACD oscillator is now above the zero line for an outright go long signal on this longer time frame.

In this Point and Figure chart of AEP, below, we can see an upside price target of $87.67.

Bottom line strategy: Traders and investors can approach AEP from the long side risking below $68 while looking for gains to the upper $80's. Not bad along with an attractive dividend.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | U.S. Equity | Energy | Mad Money | Stocks

More from Energy

The Fed Blinked and So Did We

Peter Tchir
Jun 27, 2022 9:30 AM EDT

Here's what we need to get a bigger rally.

See That Down the Road? It's the Big 'Green' Bubble, Ready to Pop

Jim Collins
Jun 24, 2022 1:30 PM EDT

Environmental, social, and corporate governance has created a monster and gullible investors should hit the brakes on their EVs and run from the Washington technocrats while they have the chance.

Weber's Rally Was Cooked Up By the Shorts and Something I Experienced First Hand

Jonathan Heller
Jun 24, 2022 10:00 AM EDT

It should be an interesting ride from here.

Will This Year's Energy and Commodity Trades Become Last Year's Tumbling Tech?

Helene Meisler
Jun 24, 2022 6:00 AM EDT

I can't remember the last time anyone asked me about Apple. No one cares.

Here's What You Need to Know About Investing in Energy

Jim Collins
Jun 23, 2022 1:00 PM EDT

The rudderlessness in DC has created an environment that's downright hostile to domestic exploitation of hydrocarbons.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:04 AM EDT PAUL PRICE

    Two Good Signs -- Especially for Small-Cap Investors

  • 12:10 AM EDT PAUL PRICE

    More Insider Buying in American Woodmark (AMWD)

    American Woodmark , which I've discussed here fr...
  • 08:55 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The 10 personality traits of successful traders an...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login