NEW YORK (TheStreet) -- Although Aeropostale's (ARO) stock has been trading below $5 since May and the teen clothing retailer has been losing money, its technical charts are positive, a sign that the company will be a survivor.

The shares traded as high as $32.24 in April 2010, and have been cascading lower ever since. The stock traded as low as $2.13 on Dec. 9, but has been rebounding since then, making its technical charts positive. The stock, as noted in December, has become an "option on survival."

Aeropostale is scheduled to report results for its fiscal fourth quarter ended in January after the closing bell on Thursday. It is projected to post a loss of 3 cents a share. The company has reported losses for seven quarters in a row.

Let's take a look at Aeropostale's performance measures, key trading levels and analysis of daily and weekly charts.

Aeropostale ($3.97 at Wednesday's close) declined 75% in 2014, but is up 71% so far this year. The stock has been trading below $5 since May 5.

Investors looking to buy Aeropostale after earnings should place a good 'til canceled limit order to purchase the stock if it drops to $3.20, which is a key level on technical charts until the end of March.

Here's the daily chart for Aeropostale.


Courtesy of MetaStock Xenith

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The chart shows a stock that crashed below its 200-day simple moving average (green line) on Aug. 8, 2013, when the average was $13.78. The stock has been above its 200-day simple moving average since Feb. 11, when the average was at $3.23.

After trading as high as $4.39 on March 2, the stock is above its 50-day and 200-day simple moving averages of $3.14 and $3.23, respectively. If the 50-day SMA crosses above the 200-day SMA, the stock would have what technicians call a "golden cross".

Here's the weekly chart for Aeropostale.


Courtesy of MetaStock Xenith

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The weekly chart is positive with the stock above its key weekly moving average (red line) of $3.50. The stock is well below its 200-week simple moving average (green line) of $11.22. The momentum reading in red along the bottom of the graph is rising at 77.58 approaching the overbought threshold of 80.00.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.