AEO — gap-reversal
| Event date | 2026-09-10 |
| Timeframe | 3m |
| Market cap | $2.3B |
| Volume vs. average | 4.0x |
| Risk Reward | +2.4 |
| Tags | capitulation, earnings |
Summary
Great earnings! Despite strong earnings, it gapped down 14% because of tariff uncertainties, and people didn't like that tariff refunds helped the earnings numbers. Gapped all the way to a good resistance zone, dipping to the same price as the year-long low. It had a dip in premarket at the low of the support zone, and you can get in as it starts to bounce, risking from that low. Sold the first part as it started to get crazy, and left a stop that got filled the next bar as it lost momentum. The size of the bar was already decent for a day's range. I would not expect it to actually fill the gap that day. Daily chart for reference.
Reference
