Monday, May 6, 2013

Abercrombie & Fitch Co. (NYSE: ANF)

Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer of casual apparel for men, women, and kids. It operates through three segments: U.S. Stores, International Stores, and Direct-to-Consumer. The company sells various products, including casual sportswear apparel comprising knit and woven shirts, graphic T-shirts, fleece, jeans and woven pants, shorts, sweaters, and outerwear; personal care products; and accessories for men, women, and kids under the Abercrombie & Fitch, abercrombie kids, and Hollister brand names. It also offers bras, underwear, personal care products, sleepwear, and at-home products for girls under the Gilly Hicks brand. As of February 2, 2013, the company operated 912 stores in the United States and 139 stores internationally. Abercrombie & Fitch Co. sells its products through its stores and direct-to-consumer sales. The company was founded in 1892 and is headquartered in New Albany, Ohio.
To review Abercrombie's stock, please take a look at the 1-year chart of ANF (Abercrombie & Fitch Co.) below with my added notations:
1-year chart of ANF (Abercrombie & Fitch Co.) About a month ago I wrote an article about ANF forming a head and shoulders pattern, but since then the stock seems to have moved into a common pattern known as a rectangle. Rectangle patterns form when a stock gets stuck bouncing between a horizontal support and resistance. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. ANF's rectangle pattern has formed a $50 resistance (red) and a $45 support (blue).
The Tale of the Tape: ANF has formed a rectangle pattern. The possible long positions on the stock would be either on a pullback to $45, or on a breakout above $50. The ideal short opportunity would be on a break below $45.

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