• 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
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

American Electric Power Could Power Its Way Higher

Let's check out the charts of AEP to see if the rally is renewable.
By BRUCE KAMICH
Oct 25, 2019 | 09:07 AM EDT
Stocks quotes in this article: AEP

In his second "Executive Decision" segment of Mad Money Thursday night, Jim Cramer again sat down with Nick Akins, chairman, president and CEO of American Electric Power Co. (AEP) , which just posted a 15-cents-a-share earnings beat that sent shares to new highs. Jim also discussed AEP in his Real Money column here.

On the topic of its power generation portfolio, Akins explained that AEP's preferred investment is renewable energy backed up by U.S. natural gas facilities. He said it's possible to generate 40% of its power from renewable sources and AEP continues to make big investments into wind and solar facilities.

Let's check out the charts of AEP to see if the rally is renewable.

In the daily bar chart of AEP, below, we can see a bullish alignment of prices and indicators. AEP has been in an uptrend since early January and there is no sign of a top yet. Prices are trading above the rising 50-day moving average line as well as the bullish 200-day line.

The On-Balance-Volume (OBV) has been moving steadily higher the past year and has made new highs the past two months to confirm the price advance. The Moving Average Convergence Divergence (MACD) has been above the zero line for nearly every day this year and just turned up to a fresh outright buy signal.

In the weekly bar chart of AEP, below, we can see a bullish long-term picture. Prices are above the rising 40-week moving average line and the weekly OBV line shows a matching rise.

The MACD oscillator has been in bullish territory since July of 2018 and it is turning upward now in a fresh buy signal.

In this weekly close only Point and Figure chart of AEP, below, we can see the uptrend and a potential price target in the $108 area.

Bottom-line strategy: Continue to hold longs in AEP and consider adding to that position. Raise sell stops to just below $90 and target $100 and $110 and $130 in the months ahead.

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 prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Utilities | Mad Money | Executive Interview

More from Stocks

Rule of the Week: Don't Fight the Fed

James "Rev Shark" DePorre
Jan 30, 2023 4:33 PM EST

We've got a mix of earnings, a rate decision and nervous investors.

3 High-Yield Dividend Tech Stocks for Income Investors

Bob Ciura
Jan 30, 2023 2:35 PM EST

Now could be a very good time to capitalize on sustainable income streams from a sector where dividend income is scarce.

Checking on AMD's Stock Charts Ahead of Tuesday's Earnings

Bruce Kamich
Jan 30, 2023 2:10 PM EST

Here's what to avoid for now.

Is This Mid-Cap Oil Stock Ready to Capture Its 'Big Winner' Potential?

Bruce Kamich
Jan 30, 2023 1:29 PM EST

Here's our technical strategy for trading oil producer Denbury.

Don't Fight the Fed? What About When the Fed Is Fighting Its Own Past?

Peter Tchir
Jan 30, 2023 1:00 PM EST

The biggest risk to markets in the coming weeks is the realization that the Fed has already gone far too far, and the economy is rolling over.

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

  • 12:27 PM EST REAL MONEY

    LIVE EVENT: Chris Versace and "Sarge" Guilfoyle Share Their Stock Market Insights

    This Monday, Jan. 30, at 12 p.m., our very own exp...
  • 11:48 AM EST REAL MONEY

    Watch Doug Kass on the Daily Rundown!

    In today's Action Alerts PLUS Daily Rundown, Doug ...
  • 11:03 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend On Real Money

    It's time to start using this power to build great...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 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