This Stock Could Make A Multi-Month Correction
Alright, let’s get in this hot rod we call Fibonacci analysis and see
if it can help us pick off a reversal trading opportunity in American Eagle
Outfitters (AEOS). This clothing retailer has been in a 2-year uptrend, but
based on my analysis the stock is about to find itself in a multi-month downside
correction with the maximum upside of 32.
The reason I make this
conclusion is based on the fact that we are hitting a resistance zone of two
1.618 extensions and also the top of a 2 standard deviation regression channel.
Last week we printed a doji candlestick, so I’m interested in selling at 28.17
stop @ 32.21 I’d personally be keeping position size a bit lighter to account
for the wide stop.
Good day all!
Derrik