-INTRODUCTION-
Everyone’s favorite clothing company Abercrombie & Fitch is tanking. The stock gapped down to the $18.50 level after a bad earnings annoucement this week. Therefore, we will look for sell entries after a retracement.
-TRADING PLAN-
ANF is moving in a downtrend, making lower lows and lower highs. We currently have a gap at the $26.00 level. Current RSI is oversold so therefore, we expect a short-term retracement to the $26.00 level to fill the gap. Our area of interest to enter sell positions is $26.00 ~ $30.00 level. From this area, we will observe for a consolidation pattern. After a breakout from the pattern, we will then prepare our sell entries. We do expect at least one more retest of the recent low at $18.00 level.
We only trade with the trend and we don't enter trade to capture the retracement part, meaning we don't try to predict the bottom. If the price made a retracement back to our area of interest, then we will prepare our entries. If the price did not reach, then we will look for other opportunities :)
Check out our ongoing and previous stock trading ideas below :)
Everyone’s favorite clothing company Abercrombie & Fitch is tanking. The stock gapped down to the $18.50 level after a bad earnings annoucement this week. Therefore, we will look for sell entries after a retracement.
-TRADING PLAN-
ANF is moving in a downtrend, making lower lows and lower highs. We currently have a gap at the $26.00 level. Current RSI is oversold so therefore, we expect a short-term retracement to the $26.00 level to fill the gap. Our area of interest to enter sell positions is $26.00 ~ $30.00 level. From this area, we will observe for a consolidation pattern. After a breakout from the pattern, we will then prepare our sell entries. We do expect at least one more retest of the recent low at $18.00 level.
We only trade with the trend and we don't enter trade to capture the retracement part, meaning we don't try to predict the bottom. If the price made a retracement back to our area of interest, then we will prepare our entries. If the price did not reach, then we will look for other opportunities :)
Check out our ongoing and previous stock trading ideas below :)
