Aeropostale Reversal Soon?

Published on Wednesday, 18 August 2010 01:15 Written by Christopher Lynn

New York, August 18th (TradersHuddle.com) - Shares of Aeropostale, Inc. (NYSE:ARO) ended the trading session lower by $0.54 or -2.33% from its previous close. Aeropostale's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Aeropostale?s (NYSE:ARO) principal activity is to retail casual apparel and accessories for both young women and young men aged eleven to twenty. The company offers a focused collection of fashion basic apparel, graphic t-shirts, tops, bottoms, sweaters, jeans, outerwear and accessories. It also provides customers with a focused selection of active-oriented, fashion basic merchandise at compelling values. Trademarks include AEROPOSTALE and AERO. The company has operations in Alabama, Arkansas, Colorado, Georgia, Indiana, Iowa and other states.

Aeropostale's current stock range is defined by calculated support defined at $23.01 and by the resistance level at $31.05, which should be used by traders planning their trades.

Traders wanting to establish a position in Aeropostale stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Aeropostale shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: