May 15 Chart of the Day - American Electric Power

Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews

American Electric Power Energy (AEP) is a certified competitive retail electricity and natural gas supply provider operating in 28 service territories in six states and Washington, D.C. with 700,000 customers.

The company is in the headlines this week for a variety of reasons including announcing it signed an agreement to sell its distributed resources business, AEP OnSite Partners as well as disclosing earlier today its 1,194-net megawatts Cook Nuclear Plant Unit 2 in Michigan has been manually tripped offline after a steam leak was discovered on May 14.

So we wanted to view their chart from a price action technical analysis perspective.

Monthly Chart 

On the monthly chart we can see that after setting its $105.60 all time high (ATH) back in 2021 price fell dramatically over time and seemingly found a bottom and bounced around the $70 area.

Since then, price has been making a series of higher highs and higher lows.

Weekly Chart

 
On the weekly chart we can see with much more clarity the recent up trend and the series of higher highs and higher lows this calendar year.

We also identified a change control zone roughly between $82 and $84. (gray shaded rectangle)

Change control zones are one of the five price action tools we teach when charting anything.  By definition, they are an area that represents where neither the bulls nor bears are in charge.  Price can slash though the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it.  Or, price can trade aimlessly sideways within it.  When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.

Price has crossed this zone an amazing 55 times since the spring of 2019 with 8 of those occurrences in 2024 alone.

We've layered in traditional Fibonacci levels in both directions as well as support/resistance to help identify potential price levels of interest and/or future price targets.

Armed with precision oriented charts like these both traders and investors can formulate their respective plans.

So what's next?