Should You Buy American Electric Power Company Inc (AEP) Today? Analysis, Price Targets, and 2026 Outlook.
Analysis Updated At
2026/01/28
BUY now for a beginner, long-term investor: AEP is in a clear uptrend (bullish moving averages + strengthening MACD), options positioning is strongly call-skewed (bullish sentiment), and the fundamental narrative (data center-driven load growth + dividend profile) supports long-term ownership. The main near-term drawback is that price is sitting just under resistance (~$120) and recent Congress activity shows net selling, but for an impatient long-term buyer, the current ~$119 level is still a reasonable entry—preferably as a partial buy now with room to add if it dips toward ~$116.
Technical Analysis
Trend is bullish and currently constructive. MACD histogram is positive (0.243) and expanding, signaling strengthening upward momentum. RSI(6) at ~64.6 is still below overbought, implying upside can continue without being stretched yet. Moving averages are stacked bullish (SMA_5 > SMA_20 > SMA_200), which typically confirms an established uptrend. Key levels: Pivot 118.12 is the near-term line in the sand; holding above it keeps the bullish bias. Immediate resistance is R1 ~119.99 (being tested pre-market) and R2 ~121.14; a clean push above ~120 would be a technical breakout continuation. Support sits at S1 ~116.25.
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