American Eagle recently dropped to the bottom of its channel on a couple analyst downgrades, but it could see a short-term rebound. It's a buy Monday below 16.70, with stop loss 16.62.
American Eagle oversold, and the accelaration in the stock is not justified (in my opinion). They are on the pace of gaining market share from VS and continue to grow. I believe pace of sell off was just too steep. Based on recent high frequency economic data and Jerome Powell's comments, consumer spending is solid and US retail sales are good, I believe close to...
This trade does have down potential as any trade does.
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 morning star (bullish).
Now- the sad truth is that the very next day the stock went back down on June...
AEO looks weak to me, the daily chart is broken, its below all its daily moving averages of 20,50,100,200 sma. its made lower relative highs and lower lows, catching support at 17.02. I would short it today if it shows good volume, a weak premarket pattern with lower lows and lower highs, profit target being the 17.02 support area.
The current mixed bag of results in the retail sector makes this a difficult call coming into earnings and high volatility is expected post earnings. We are biased on the bull case but on our chart we have included a bearish view, where we still have to complete the C wave in correction. Regardless of the outcome there is profits to be had, as the upside and...
(IN MY INFINITE IGNORANCE)
PRICE AND VOLUME HAVE BULLISH TENDENCIES WITH PROMISING VOLUME PATTERNS AND A BIG BULLISH CANDLE OFF 22$ RESISTANCE.
ACCORDING TO THE ADX, WE ARE RANGING - BUT INDICATORS SHOW SIGHS OF A POSSIBLE REJECTION (REVERSAL) TO THE DOWNSIDE.
ANY ADVICE, INPUTS, CONCERNS AND THOUGHTS WOULD BE APPRECIATED.
AEO came across the scanner tonight and I like the look of the set up. I am watching for a possible breakout to the upside, with a target of $22.14-$22.45.
Another setup to watch closely. If the price falls below the lower support line than the trade Idea is void.
Lets see where this one goes.
Everything here is purely my opinion, and in no way advice or...
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.
