AEO peaked at 22.97 in October 2012. Then the stock traced a year-long downtrend, reaching a new 52-week low at 13.14 in October 2013. As shown on the chart, it recovered off the low and formed a head-&-shoulders base on breaking through the 15.52/15.67 shoulder resistance line. While the 14.73 (20 day MA) area holds dips near term, the stock has the scope to challenge the 17.90 (200 day MA) area which is also near the 8-month falling trendline resistance. Stop should be placed beneath 14.73. A breakdown below 14.73 would signal topping and resume the broad weakness towards 13.14 for a retest.
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