AEP

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American Electric Power Company Inc. reported its Q4 '07 results late January. While the company's quarterly revenues rose 10% (y-o-y basis), the quarterly profit rose 28% (y-o-y basis) helped by favorable weather and higher rates across much of its service area. While the fundamentals appear robust for the medium-term time frames, the technical picture suggests the declining bullish momentum in the stock. The stock's upward move from $44 level (early August '07) lacked momentum to test the peak formed during May '07 and declined after encountering resistance around $48 levels (mid December '07). The stock formed a lower trough than the trough formed during August '07 indicating a possible downtrend. A break of the trendline could have short-term bearish implications. AEP could likely decline to the recent lows of $41 levels in the coming sessions.
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