AEO) Decline More or Rise?

AEO stock was in an uptrend earlier. Before the quarter earnings, the AEO share price did not show any signs of weakness in the trend and followed the trendline support. In order to continue to move upward, the price was waiting for a pending pullback or profit booking, which happened just after the Q2 results. On the daily charts, AEO stock has turned bearish and may decline more to form a support near fib 50.00% level.

AEO stock price was at $14.48 with neither an increase nor a decrease. In the intraday session, the price was stagnant at a 0.00% change. Moreover, the intraday trading volume of AEO is 5.545 Million less than the 10-day aggregate volume of 5.91 Million. Just after the results, the profit booking came and the price slipped below the trendline support and is trading below the major EMAs.

AEO stock has ascended since the Q1 results on May 24th, 2023 which were positive and displayed buyer accumulation in the previous sessions. Moreover, the Q2 results were positive as the reported EPS gained 59.42% more than estimated and a 0.47% gain in reported revenue than estimated on September 6th, 2023.

Many people were waiting for the earnings report and since it was good, they decided to take profits and sell their shares. That’s why the stock price fell below the trendline support and below the major moving averages.

The next dividend ex-date is October 12th, 2023 and the dividend amount is $0.10. The dividend will be paid on October 27th, 2023. The last time there was a dividend, the stock price got more buyers before the ex-date reached a high before the earnings report, and then dropped. This might happen again and after finding new support, the stock price might break the yearly highs and make new records.

AEO Stock Price Technical Analysis in 1-D Timeframe

The price took major support on May 24th, 2023, ascended swiftly and effortlessly from around $9.5, and made a streak of break of structures by forming higher highs and lows and following trendline support.

The Fibonacci was of great help as the price spent a decent amount of time and stepped up from 78.60% and 23.60% levels and reached a high of $17.50. Just after the Q2 earnings, the profit booking came and $17.50 became resistance and a fall was observed on the charts.

Moreover, the current stock price of AEO stock might fall more to form support around $13 and then probably may bounce back dividends are near and buyers’ accumulation might start from this level as well, there is a possibility for the price to move downward to the next support level of $13.5 and $13.

On the other hand, if the price forms the current level of support and rises, it might ascend toward $15 and $15.5 and beyond.

At the time of publishing, American Eagle Outfitters Inc. (NYSE: AEO) is trading below the 20 and 50-day EMA. RSI is around 36, and MACD shows a bearish cross with the increasing histogram width.

Summary

American Eagle Outfitters Inc. (NYSE: AEO) stock price is showing a bearish trend and the stock has slipped past the trendline support. However, the technical indicators are giving bearish views but the scenario can reverse too if AEO stock forms a support near Fib 50.00% level around $13 price.

Technical Levels

Support levels: $13.5 and $13
Resistance levels: $15 and $15.5

Disclaimer

In this article, the views and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.