Don't Ignore This Chart!

A Bollinger Band Squeeze for American Eagle

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American Eagle Outfitters (AEO) has been stuck in a consolidation since early May. Moreover, notice that this consolidation is narrowing as the Bollinger Bands contract. In the indicator window, Bollinger BandWidth is currently at its lowest level since February, which was scene of the last big contraction and breakout. Watch the current boundaries for the next directional clue.

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Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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