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Fan Yang

Abercrombie and Fitch (ANF) - Recovery Stalled by Key Resistance Factors

Shares of Abercrombie and Fitch (ANF) has been recovering from a low on the year of 10.50  but found resistance at it tagged 14.00. Last time, we noted ANF's downside towards 10 and then 9, and that it could be a bargain if it gets near the historic low, around 6.25. If ANF indeed finds resistance around 14.00, this bearish outlook is still valid. 

Abercrombie and Fitch (ANF) Daily Chart

(click to enlarge)

Resistance Factors:
- As price tagged 14.00, it met a previous support, which could become resistance if the market is bearish.
- Furthermore, price tagged the 200-day simple moving average (SMA). Again, if the market is bearish, it should remain below the 200-day SMA.
- Finally, the RSI was above 70. In a bearish market, this is an overbought signal. 
- We can see on the daily chart, that price is now challenging a rising support. A break below this support further suggests the bearish outlook towards 10 and 9. 
- There might be some temporary support around 12.00 so watch out for that. As long as price struggles to bounce back above 14.00, the bearish outlook should still be in focus.