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I Wouldn't Rely on the Current Support for Gap (GPS)

The Gap Inc. (GPS) might see some further decline ahead in 2017. For now, it is still trading above a key support, but I wouldn't rely on this support.

Gap (GPS) Daily Chart

(click to enlarge)

Here are the reasons I suspect price will break the common support around 21.55. 
1. The price action in April/May was a false bullish breakout. Price broke out of a small 4-month range, but retreated after failing to test the 27.30 resistance. The fact that price failed to push towards the range resistance around 30 showed that bears are in charge.
2. The RSI tagged below 30 and then held under 60 on a rebound. This shows that the bearish momentum started in May is still maintained. 
3. Price action in May/June developed head and shoulders pattern. Now, we traditionally discuss H&S patterns after an uptrend. But when we see this pattern in the middle of a downswing, it means there was a failed bullish attempt, and that bears are still in charge. In other words, the consolidation structure suggests there will be further downside. 

If price does indeed break below 21.55, we might see it slide to 17 to test the 2016 low. 
Seeing that price entering 2016 was bearish to begin with, this bearish outlook towards the 17.00 handle is within the mode of the overall trend.