American Eagle reports earnings, delays sales reports

According to the company's transcript, sales of women's denim and graphic T-shirts were strong. Moreover, sales of women's graphic T-shirts turned positive for the first time in "several quarters." The company also believes that its planned promotional strategy in this category is "both compelling to consumers as well as delivering strong market performance." Can these departments continue to pull their weight and the weight of the rest of the retailer's products?

Putting the sales results off until Thanksgiving sales can be considered a good move, as Black Friday sales could prove a boon to the report. Of course, the opposite could always be true.

Technically, AEO was performing well until it met with resistance in the $19 region roughly six weeks ago. Once that happened, the teen retailer's stock pulled back to test the support of its 10- and 20-week moving averages, which both failed. Fortunately for AEO, its 10-month moving average has stepped up to the plate and is acting as support. We will see if this long-term measure of support can hold throughout the holiday shopping season.