American Electric Power Co. Inc. rallied from $41.83 (U.S.) to $65.38 above a rising trend-line (dotted line) and above its rising 40-week moving average (40wMA – A-B). After a corrective move to $52.50 (C) it stayed in a large horizontal trading range between $52.50 and $59.00 (dashed lines). The rise above the top of this range (D) signalled a breakout, renewed investor interest and the start of a new major up-leg. The subsequent minor correction should provide a good entry point. Only a sustained decline below $59 would be negative. Point & Figure measurements provide an initial target of $69. Higher targets are visible.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. and he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com.