In the past few sessions, the Gap shares have suffered from a sharp fall and is now coming back to a significant level.
The last earning release shows 3% reduction of sales. In detail, it concerns for 5% Banana Republic, 2% Old Navy and 3% the Gap brand.
According to Surperformance rating, the company is an opportunity for a trading strategy. Indeed, it is a good compromise between its value and its visibility.
Gap is back on an important support due to the earnings release. This situation gives credit to a potential technical rebound. Furthermore, the stock could find new energy and would rise towards the next USD 39.7 resistance.
Considering technical elements, it seems to be an appropriate timing to take a long position in The Gap in order to benefit from the USD 36.8 support area. A first target price will be the USD 39.7 resistance. A stop loss will be placed under the mid-term support currently tested. Only a crossing of USD 39.7 would validate a bullish trend in order to aim higher target price.
The Gap, Inc. is a specialty apparel company in America. The Company offers apparel, accessories and personal care products for women, men and children. Its Old Navy, Gap, Banana Republic, and Athleta brands offer clothing, accessories and lifestyle products for men, women and children. It is an omni-channel retailer, with sales to customers both in stores and online, through Company-operated and franchise stores, websites, and third-party arrangements. Its omni-channel services, including buying online pick-up in store, order-in-store, find-in-store, and ship-from-store, as well as enhanced mobile-enabled experiences, are tailored across its collection of brands. Gap includes adult apparel and accessories, GapKids, babyGap, Gap Maternity, GapBody, and GapFit collections. Banana Republic is a premium lifestyle retailer celebrating exploration and self-expression through timeless quality, versatile fabrics, and exceptionally made womenswear, menswear, and home designs.
THE GAP, INC. 
