This monthly chart for American Eagle Outfitters (AEO) shows a clear non-logarithmic trend line that has continued throughout the history of the company's existence on the exchange (except briefly during COVID lockdowns). The green shaded area is a definite buy area for long-term investors. This linear trend held up during the Great Recession when 10% of the population was unemployed, and there is no reason to believe that economic circumstances are worse now than in the Great Recession, such as to expect the 25-year trend to end. Similar to VFC, this is another high dividend stock that is sitting in a relatively rare buying zone. Based on my charting analysis, I believe that this stock will likely end 2022 about 25% higher than the current price. So based on the charts, I expect to get about a 25% return on investment in addition to a 5% dividend by the end of the year.
Not financial advice. As always nothing is ever guaranteed. Trends can end.
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