Gap (GPS) Puts Pressure on Support around 22.00; 17.00 in Sight
Last time we looked at Gap (GPS), we saw that it was testing a bullish breakout. It was testing the broken range as support. Well, we can say now that the last line of bullish defense is broken, and Gap is likely on a bearish run for the medium-term. (In upcoming weeks to a few months).
Gap (GPS) Daily Chart
(click to enlarge)
Bears Regain Control:
- First of all, we should note that the prevailing trend heading into 2016 was bearish.
- Then, GPS consolidated, but not after making a low just above 17.00.
- Price found resistance around 30, which proved to be the critical resistance keeping away a bullish market.
- However, price didn't even push to the 30 area before turning lower, suggesting weak bulls.
- The sharp price action also suggests that bears are back in control.
- First of all, price looks poised to test the 21.60-22 common support area.
- Then, if price falls below 21.50, we should anticipate continuation towards 17.00.