Look at this beautiful channel that AEO has been building for us to milk. This seems like a no brainer play to me. I'll be buying now with a stop loss right below the lower trendline. I'll only sell if it CLOSES daily price action below this trendline. One lesson I've learned recently is that intra day price action does no accurately follow trends on daily charts.
After being a holder for years of AEO, I recently sold for a gain and have been keeping a close eye still.
AEO is about to hit a fib. line of .786 at or around 26.88 price. Yes, it may climb higher, but the recent trend has been to drop steep after hitting a mark.
Monitor and watch for a possible short soon by October at the latest.
Now American Eagle Outfitters could very well break out considering the bull flag pattern and kind of positive earnings report (not negative=positive?) but I also like "buying the dip", might be an even better way to get in before a breakout even happens... Perhaps do both?
Going purely off the chart pattern, and the fact that the market is having a large pullback, I think it's a fairly risk free short. Stop is just above resistance where it could break out, limit is just above the bottom.
Comment your ideas below.
American Eagle Outfitters is a retailer of apparel and accessories that also offers personal care products. It sells its products in stores as well as online. It operates stores in the USA, Canada, Mexico, Hong Kong, China and the UK. Price Chart completed over 8 month long H&S pattern. Look for long on a weekly close above neckline of 14.57. H&S Bottom Target ...
Red Flag refers to gap up, could this be a bull trap?
im looking for it to correct around the .618 and .78, resistance at the 1
SEASONAL -- Also, keep in mind some believe that clothing retailers stock price can be influenced by temperature/heat (see: Kohls, Sears, etc) -- with the end of summer around the ...