American Eagle Outfitters, Inc., together with its subsidiaries,
operates as an apparel and accessories retailer in the United States and
Canada. The company’s retail stores offer denims, sweaters, fleece,
outerwear, graphic T-shirts, footwear, and accessories for 15 to 25-year
old men and women under the American Eagle Outfitters brand name; and
intimates and personal care products for girls under the aerie brand
name. As of February 2, 2013, it operated 893 American Eagle Outfitters
stores and 151 aerie stand-alone stores, as well as 49 franchised stores
in 13 countries. The company also sells and ships merchandise through
its e-commerce Websites, including ae.com and aerie.com to 81 countries
worldwide.
To review American’s stock, please take a look at the 1-year chart of
AEO (American Eagle Outfitters, Inc.) below with my added notations:
Over the last (6) months AEO has traded mostly sideways, but over the
most recent month the stock has formed a nice trend line of support
(red). Always remember that any (2) points can start a trend line, but
it’s the 3rd test and beyond that confirm its importance. So, AEO’s
trend line is important to the stock since it has been tested on three
different occasions. In addition, the stock has a key level at $14
(blue) that is currently acting as resistance.
The Tale of the Tape: AEO has a trend line support
and a $14 resistance. A long position could be entered on a break above
$14, with a stop placed below that level. A short position could be
entered if AEO were to break below $13.50, which would be a break of the
trend line support.
Please share this article