Aeropostale Close to Resistance

Published on Wednesday, 28 July 2010 03:40 Written by Christopher Lynn

New York, July 28th (TradersHuddle.com) - Shares of Aeropostale, Inc. (NYSE:ARO) are trading very close to calculated resistance at $31.05 with the current price action closing at just $29.73 placing the stock near levels that make it difficult to buy.

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 current calculated support defined at $28.06 and by the resistance level at $31.05, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Aeropostale, as the stock is well above support, however, as the stock pulls back towards $28.06 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $31.05 then traders will get an opportunity to enter Aeropostale stock by establishing a position as the stock moves to a higher range.