Abercrombie & Fitch (ANF) is part of the retail apparel industry group and the consumer discretionary sector. ANF surged with a gap up in early April, but failed to hold this surge and filled the gap in mid April.
The inability to hold the gap-surge shows weakness. There was another, and smaller, surge last week with an inside day forming over the last two days. A lower high could be taking shape with resistance around 26-27. The inside day shows indecision that could foreshadow a reversal lower. The On Balance Volume (OBV) is shown below with a negative divergence in March-April. Volume is not keeping pace with price and this is also negative.
About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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