Summary:
- Abercrombie & Fitch (ANF) rose on Friday morning, trading 2.5% higher after stock analyst Wedbush raised its price target for the clothing retailer.
- Our view is that the stock will continue higher only to fail in its intermediate resistance zone.
Wedbush Securities raised its price target for ANF from $17 to $19. However, the stock analyst was a day late, as the shares closed at $19.28 on the previous trading day.
In analyzing the market cycles for ANF, the present rising phase is substandard, with a high, so far, only in the first week off its recent low. Yet we believe it will continue to move higher before failing in the resistance zone between $21.70-22.50.
After that, we see the stock declining again, testing the $15 level by March of 2019. The megaphone suggests that the stock is trying to make a longer-term bottom.
For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.
