AEO has just gotten past the horrible 4th quarter sales from last year, and consumer buying power has risen. I think the stock has over sold, and if you look at June 11th, that looks closely like a modified ( ).
Now- the sad truth is that the very next day the stock went back down on June 12th, and this makes not a true . On June 13 +14 stock prices rose up beyond the opening price of the 12th and I jumped in.
Looking at a target between $18.50 and $20.00 as solid gains. Yes, that is a large area, but if you notice at around $19.75 is where the shake out really happens, making that a great short gains target and over $2 of profit.
Stop /Loss has been placed at $16.59, the low of the price on June 12th to reduce any horrible loss, and roughly a $1 loss.
Let me know what you think.
I am not a financial advisor, I just like to share my thoughts and trades with the community.
I can only suspect that this institution has been shorting the stock since June 5th and still has plenty of shares to sell off.
Over all momentum is seeing push back right around 17.97-18.05 price range and should stop that loss.
Still scored a profit, just not the $2 I was looking for. Will continue to watch where this stock is at to look for another trade.