I saw a reference to Abercrombie and Fitch (NYSE: ANF) in the media over the weekend and this prompted me to have a look at how the stock was currently charting. The article suggests that the company has been making an effort to reposition itself in an attempt to reclaim market share and the chart reflects that there seems to be some progress in this regard, at least on the share price front. The stock price was near an all time low following the Covid-19 market pullback but has clawed its way back up to an historic support / resistance level. The charts below reflect my technical view of the stock.
ANF weekly: the chart below shows how price had been in decline since 2011, when it was trading just under $80, until it reached near the all-time low region of $6 in early 2020 following the Covid-19 inspired stock market pullback. The stock price has been making decent recovery progress since this 2020 low.
ANF weekly: the chart below shows price action with some trend lines in place. There is a very rough triangle pattern capturing recent highs and lows and a horizontal level at $51 that seems to be a significant Support / Resistance zone.
ANF weekly: the weekly chart below has had a Fibonacci retracement tool applied and it is interesting to note that the popular 61.8% Fibonacci retracement of the 2011 – 2020 swing low move lies near the $51 S/R zone. This region will be a key one to watch for any new effort to push higher. Any triangle trend line breakout and move above $51 would suggest bullish continuation and would then bring the previous high, near $80, back into focus.
ANF weekly: the chart below shows this weekly chart with a more expanded profile.
ANF weekly: the weekly chart below shows the expanded view with a different Fibonacci retracement in place and this one maps the recent 2020-current time swing high move. Any break and hold below the triangle trend line would bring the $25 region back into focus as this seems to be a reaction zone in its own right and is also near the popular 61.8% Fibonacci level. Any futher weakness would then bring the recent low, near $6, into focus.
Concluding comments:
ANF is currently consolidating within a weekly chart triangle under the $51 S/R region. Any trend line breakout would bring the following levels into focus:
- Bullish breakout: $80
- Bearish breakout: $25 and $6