The Gap, Inc. operates as an apparel retail company. It offers
apparel, accessories, and personal care products for men, women,
children, and babies under the Gap, Old Navy, Banana Republic,
Piperlime, Athleta, and Intermix brands. The company operates through
two segments, Stores and Direct. Its products include maternity apparel;
loungewear, sleepwear, intimates, and active apparel for women; and
handbags, shoes, jewelry, personal care products, and eyewear for men
and women; women's apparel, footwear, and accessories for sports and
fitness activities, including crossover apparel and casualwear; and
luxury and contemporary apparel and accessories. The company also has
franchise agreements with unaffiliated franchisees to operate stores in
Asia, Australia, Eastern Europe, Latin America, the Middle East, and
Africa under the Gap and Banana Republic brands. In addition, it sells
products that are designed and manufactured by branded third parties
under the Piperlime and Intermix brands, as well as collections in
partnership with designers and other third-party merchandise under the
Gap brand.
To review Gap's stock, please take a look at the 1-year chart of GPS (The Gap, Inc) below with my added notations:
GPS has been on a nice rally since December, but has since paused in a
sideways trading range. For the last (2) months the stock has formed a
$42.50 resistance (navy) and a $40 support (blue). At some point the
stock will have to either break its support or break up through its
resistance. A break above $42.50 would also be a new 52-week high.
The Tale of the Tape: GPS has created two levels to
watch: $40 and $42.50. The possible long positions on the stock would be
either on a pullback to $40, or on a breakout above $42.50. The ideal
short opportunity would be on a break below $40.
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