American Electric Power Co., Inc. is an electric public utility holding company. It operates and maintains the electricity transmission system and distribution lines to deliver power. Its segments include Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing. Vertically Integrated Utilities segment is engaged in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers. Transmission and Distribution Utilities segment is engaged in the transmission and distribution of electricity for sale to retail and wholesale customers.
When researching a stock like American Electric Power, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from AEP Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for AEP stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the AEP 200 day moving average ("AEP 200 DMA"), while one of the most popular "shorter look-backs" is the AEP 50 day moving average ("AEP 50 DMA"). A chart showing both of these popular moving averages is shown on this page for American Electric Power. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the AEP 200 DMA and the AEP 50 DMA, we get a moving average convergence divergence indicator ("AEP MACD"). The AEP MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |