Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.

AEO's Earnings Surprise Not a Surprise Technically


American Eagle Outfitters, Inc. (AEO) gapped up this morning in reaction to earnings.

Let's notice that the stock thrust out of a year-long rounded-base pattern, which defines the early price action as an "upside breakaway gap," that initiates a new, bullish phase for AEO.

The next meaningful resistance area resides at 16.90-17.00, which if (when?) hurdled, will trigger intermediate-term upside projections into the 21.00-22.00 target zone.

At this juncture, only a decline that fills the gap into the 15.00-14.80 area will compromise the timing of the upmove to the above-mentioned targets.

  • 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!