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Gap (GPS) Could Confirm a Bearish Outlook

Earlier in July, Gap (GPS) broke below a common support that was in the 21.55-22 area. I think this opened up a bearish target around 17.00. But price rebounded sharply after testing 21. 

Gap (GPS) Daily Chart

(click to enlarge)

Testing Range's Central Pivot:
- Price rebounded sharply, a sign that bears are not committed to the breakout.
- However, bears have another chance to prove themselves around 24, which represents middle of a range between 21.60 and 27.15. 
- We should also watch how price reacts around the 200- and 100-day simple moving averages (SMAs) as well.
- If price retreats from this area, I would say that bears are still in charge. 
- Also note that the RSI is now testing 60 after it went below 30 in May. If the RSI can hold below 60 for the most part, the bearish momentum from May would still be maintained.