For today's chart we've chosen to take a look at American Electric Power Co
) because it is testing the final two support
levels that stand in the way of a move toward $38.50. As you can see from the chart below, today's decline was stopped by the combined support of the 200-day moving average
and a twelve-month trendline
. Technical traders will keep a close eye on this stock at current levels because two consecutive closes below the mentioned support will cause many speculators to lower their price targets to $38.50 - the price near the gap that was created in October. It is important to mention that it may not be too late for the bulls to stop the trend reversal, but we'll need to see them act soon otherwise the bears will remain in control.