For his final "Executive Decision" segment of Mad Money Friday evening, Jim Cramer checked back in with Nick Akins, chairman, president and CEO of American Electric Power (AEP) , the utility that yields nearly 2.9%.
Akins said that AEP remains a strong, consistent company that continues to invest and added that as our economy continues to electrify, they're seeing growth across the board from transportation and manufacturing, oil and gas, hospitals, education and more. When asked whether demand would fall if everyone worked from home due to the coronavirus, Akins said that since margins are higher for residential usage, they'd actually do better if that were to happen.
In this daily bar chart of AEP, below, we can see that prices have been in an uptrend the past 12 months. Recently, prices quickly declined to test and break the rising 50-day moving average line as well as the rising 200-day moving average line. In this unsettled market environment we could see further testing the 200-day line. The trading volume has been heavier than normal in recent days.
The On-Balance-Volume (OBV) line shows weakness from the middle of February and that tells us that sellers of AEP have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator is below the zero line in bearish territory but we could see a cover shorts buy signal in the days ahead if AEP rallies.
In this weekly bar chart of AEP, below, we can see a longer-term uptrend. Prices are holding key support around $90 as they test the rising 40-week moving average line.
The OBV line and the MACD oscillator have started to show some weakness.
Bottom line strategy: The charts of AEP still look "okay" but a weekly close below $88 could precipitate some further selling. Hold for now.