RC wrote this about Aeropostale:
I was hoping you could go over the chart for ARO. As you can see it is quite oversold, but the MACD continues to look good and it is breaking through the march highs. I have been holding from 26 and was looking to set my exit point. Thanks
I think RC meant ‘overbought’ (I make that mistake all the time). ARO is showing a lot of strength as evidenced by the stochastic reading staying overbought for so long but it’s also close to that resistance around 34 that’s stopped it several times. To give the stock some room consider some kind of trailing stop. The 20 DMA/middle Bollinger Band seems to have captured good portions of the swings this year.
