In his Monday night "Mad Money" program, Jim Cramer outlined his wartime portfolio. Third on the list were utilities: Stocks like American Electric Power (AEP) yields 3%, while Consolidated Edison (ED) and Dominion Energy (D) yield 3.4% and 4.5%, respectively. Taking a look at these three names, I favor (AEP) , let's check out the charts.
In this daily bar chart of AEP, below, we can see a bullish chart picture. Prices where in an uptrend for most of the year, but turned sideways in September. AEP is trading above the flat 50-day moving average line and above the rising 200-day moving average line. A dip in early November towards the 200-day line looks like it was a buying opportunity.
The daily On-Balance-Volume (OBV) line moved up to a new high in December telling us that buyers of AEP have been more aggressive and probably foreshadowing new price highs soon for AEP. The Moving Average Convergence Divergence (MACD) oscillator is above the zero-line, but just crossed to the downside for a take-profits sell signal on this time frame.