AEO Follows Our Technical Script

On today’s chart, and to the right, is our discussion from yesterday (8/19) about American Eagle Outfitters, Inc. (AEO) before earnings were released this morning prior to the opening bell...

Both my near-term pattern work, and my intermediate-term momentum work are telling me to hold my long position in the Sept 11 AEO calls in anticipation of additional strength that projects next into the 13.60/90 target zone.

Today's bullish reaction to earnings has broken the back of the 11-month downtrend, and has confirmed the completion of the Apr-Aug bottom formation, two-significant technical events that argue in favor of remaining involved on the long side of AEO through back to school, heading into Christmas holiday sales.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!