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Fan Yang

Abercrombie and Fitch (ANF) Opens up More Downside Risk

Earlier in March, we looked at the price action of Abercrombie and Fitch (ANF). We noted that the structure of price action suggested further downside. Indeed, during the 4/5 session, price broke below the consolidation range ANF has been trading in throughout 2017. 

Abercrombie and Fitch (ANF) 4H Chart

(click to enlarge)

- The 4H chart shows that price has been relatively flat in 2017, following a bearish trend to end 2016.
- After a bullish attempt failed to extend into a bullish reversal, price started to hammer at the range support.
- The fact that price was still under the 200-period simple moving average (SMA), plus the occurrence of a false bullish breakout, suggested downside.
- As price breaks below the the 10.85 support, we should anticipate further slide towards 10, and then 9.
- In fact, don't be surprised if price slides towards the record low around 6.25. 
- If you think ANF is going to survive, it could be a bargain around 6.50-7.00.
- But for now, I would expect further downside. 

Abercrombie and Fitch Monthly Chart
(click to enlarge)