Core Insights - American Eagle Outfitters Inc (AEO) is experiencing a 6.5% increase in stock price, trading at $11.53, following the launch of a new denim campaign featuring Actress Sydney Sweeney and a limited edition jacket called "The Sydney Jean" aimed at attracting Gen-Z consumers [1] Group 1 - AEO is on track for its third consecutive price increase and is achieving its best daily performance since May 12, having broken above long-term resistance at the 50-day moving average, while still addressing a 31% year-to-date deficit [2] - Short interest in AEO has risen by 24% over the last two reporting periods, now accounting for 13.1% of the stock's total available float, indicating a potential for short covering as it would take nearly three days for shorts to buy back their positions at the current average trading pace [2] - The stock has historically underperformed against volatility expectations, reflected in its Schaeffer's Volatility Scorecard (SVS) rating of 12 out of 100, suggesting that despite the current price increase, AEO may still be a viable selling candidate [3]