American Eagle Outfitters (AEO) disappointed stockholders Thursday evening as the retailer posted a profit miss and paused its quarterly dividend. Not good news for investors.
Let's check out the charts and indicators on AEO.
In the daily bar chart of AEO, below, we can see that the shares have suffered the past 12 months. Prices tried to stabilize and rally in July but the rally petered out quickly in August. AEO is back below the 50-day moving average line and the declining 200-day line. The stock is lower in early market trading and we could see a new 52-week price low made in trading Thursday.
Trading volume increased in August as prices declined and that is a negative. The daily On-Balance-Volume (OBV) line is weak and tells us that buyers of AEO have not turned aggressive. The Moving Average Convergence Divergence (MACD) oscillator is back below the zero line in sell territory.