AEO Trade Idea

Something is amiss in this sub industry and I'm sure I'll find more candidates.

 AEO daily bear flag

 As for a high probability Swing Short entry, I used a 2-day chart just to clean up the trend and see where the pivot was. The red trendline is the pivot and a move below that, even on an intraday basis, will likely make for a good swing entry, even if you want to treat this as a trending trade. I don't see this gap being filled, which makes it a rare break away gap and very bearish at that.

 Here's the idea, sell short AEO on a move below $13.70

 The 2- day Trend Channel holds the Trend here pretty well, so my initial stop would be at the upper channel which is $14.50, that's too obvious a number so I'd pick something like $14.63 or $14.41. In any case, the risk isn't too bad on this trade and the probabilities look good.

This is the first Apparel in the "Specialty" sub-industry I could think of, ANN, and it's not looking too good today either, so I assume when I look at the sub industry component stocks, I'll find a bearish trend developing and probably some more candidates. If any one is interested in this as a short and maybe wants to run a pair trade, let me know and I'll look for a long hedge for the pair.