Abercrombie & Fitch Co. : Violent downward move
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$40.4 | $44 | $34 | +8.91% |
The management has revised its forecasts down for earning per share in a range of $3.5 and $3.75, less than consensus estimations which expected $4.22.
Technically, the stock was in a accumulation phase. The downward trend occurs by bearish gaps. The last one might be an exhausting gap.
However, the bearish move should continue to reach $36 weekly support. On this level, it would be interesting to gamble fast technical rebounds. The current oversold level shows the implementation of upward trend.
In this case, investors could take a buy order $36 to aim at $44. A stop loss should be fixed at $34.