ANF hits the bull flag target— Here is where the dip-buyers are waiting
|Abercrombie & Fitch (ANF) has put on an absolute clinic in momentum trading recently. Since November 24th, culminating in a move on Monday, this retail powerhouse has surged over 100%. To put this run into perspective, it has been an incredible one-month vertical march with only six red candles during the entire climb.
Looking at the technicals, Monday’s price action officially completed the bull flag measured move at $130.33 target established by the flag that formed back in early December. After a run this steep, the stock is looking near-term overextended. From a tactical standpoint, ANF is due for either a healthy pullback or a period of sideways consolidation before it can realistically take a shot at the next resistance level of $143.54.
If we do see some profit-taking, the first minor floor to watch is $122.72. Below that, we find much stronger support at $117.03. However, the most critical area to watch is the old declining trendline, currently sitting around the $110.00 mark. How ANF reacts to that trendline will be the ultimate test; holding that level is critical if the bulls want to maintain this historic momentum against any near-term selling pressure.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.