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Amer. Egl Outftr - AEOS - cls: 28.19 chg: +0.88 stop: 26.55

Company Description:
American Eagle Outfitters is a leading lifestyle retailer that designs, markets, and sells its own brand of relaxed, casual clothing for 15 to 25 year olds, providing high-quality merchandise at affordable prices. AE's collection includes modern basics like jeans, cargo pants, and graphic Ts as well as a stylish assortment of cool accessories, outerwear and footwear. American Eagle Outfitters currently operates 778 AE stores in 49 states, the District of Columbia and Puerto Rico, and 69 AE stores in Canada. AE also operates via its Web business, www.ae.com, which offers additional sizes and styles of favorite AE merchandise. (source: company press release)

Why We Like It:
We have had our eye on AEOS for days just hoping for a pull back to long-term rising technical support at the simple 50-dma. This stock has been a huge pillar of strength in the retail sector and has pretty much ignored the weakness and volatility in the major stock averages. With shares marching to the beat of its own drum we feel more confident buying the bounce from support even through the major averages look vulnerable to more weakness. One could easily argue that AEOS is way overbought but in this case we're following the tried and true market maxim that the "trend is your friend". We will buy the bounce today with a stop loss under the recent low at $26.55. Our short-term target is resistance at $30.00 but we would not be surprised to see AEOS breakout on its next rally higher.

Picked on March 28 at $28.19
Change since picked: + 0.00
Earnings Date 05/14/05 (unconfirmed)
Average Daily Volume: 1.1 million

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