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A reversal has been brewing for the Gap (GPS)

Shares of the Gap (GPS) have been choppy in 2016, choppy and bearish, but it could be turning bullish.

GPS Daily Chart 10/27

(click to enlarge)

Breaking patterns:
- We can see that price has been falling since at least April of 2015. (it was trading sideways for almost a year before that).
- Price action became a bit choppier in 2016, but was able to push to a new low a hair above 17.00.
- Since then, price has came up and broke a falling trendline.
- Furthermore, price action established a key pivot near 21.60, creating a higher low, and thus breaking the prevailing lower-lower pattern of a downtrend.

Bullish anticipation:
- As price climbs above 27.00, we should probably anticipate another 10% or high pop towards the 30-30.75 support/resistance pivot area. We will want to see more evidence of a bullish reversal to consider GPS above 31. 
To sum it up, these are the reasons I believe GPS is up for a bullish reversal:
- The increased choppiness,
- broken trendline,
- higher low and now a higher high,
- and the fact that price is trading above the 200-, 100-, and 50-day simple moving averages.