American Eagle Outfitters Moving Above Resistance

Published on Friday, 03 September 2010 18:00 Written by TradersHuddle Staff

New York, September 3rd (TradersHuddle.com) - Shares of American Eagle Outfitters, Inc. (NYSE:AEO) closed the trading session at $13.92 just above calculated resistance at $13.72 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

American Eagle Outfitters, Inc. (NYSE:AEO) retails men's and women's casual apparel, footwear, outerwear, and accessories. The company operates stores in the United States.

American Eagle's stock was trading in a well defined range with support at $12.58 and resistance at $13.72, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that American Eagle's stock is still near the broken resistance level, traders will be focusing on $13.72 to see if the stock holds the breakout without rolling over.