AEO brakeout or range bound trade?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?
AFG trade ideas
Long IdeaAmerican Eagle Outfitters is a retailer of apparel and accessories that also offers personal care products. It sells its products in stores as well as online. It operates stores in the USA, Canada, Mexico, Hong Kong, China and the UK. Price Chart completed over 8 month long H&S pattern. Look for long on a weekly close above neckline of 14.57. H&S Bottom Target comes at 18.58 area.
The Bearish Case for AEO -- Gap up or Bull Trap?Red Flag refers to gap up, could this be a bull trap?
im looking for it to correct around the .618 and .78, resistance at the 1
OTHER CONSIDERATIONS:
IMPLIED VOLATILITY/EARNINGS
SEASONAL -- Also, keep in mind some believe that clothing retailers stock price can be influenced by temperature/heat (see: Kohls, Sears, etc) -- with the end of summer around the corner, demand could and likely will move to other sectors