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ANF Holding Above 28 and Maintaining Bullish Picture

Abercrombie and Fitch (ANF) has been on a bull run since hitting a 2015 low around 15.50. This was in an area of common support that goes back to 2008, 2002, 2001, and 2000. 

ANF 4H Chart 4/27

(click to enlarge)

Now after a run up to almost 33 in March 2016, we started to see ANF consolidate then go in a bearish correction in April. This bearish correction brought price to about 28 before stalling. This is a critical support area. It now involves
1) a previous resistance pivot,
2) the 200-period simple moving average (SMA)
3) and a rising trendline

These 3 support factors seem to be working as ANF found buyers again at 28 during the 4/26 session. If price can climb back above 30.00 during this or the next week, we should anticipate a bullish continuation that will test the resistance around 33.00 with upside in the short-term to 34.25-34.50 area. This area involves a previous support pivot and the 200-week SMA.

ANF Weekly Chart 4/27

(click to enlarge)

A slightly more aggressive outlook for the medium-term could be the 40 psychological level. As we can see in the weekly chart, ANF is in a possible bullish reversal after confirming a price bottom as well as breaking above a falling trendline. A hold above 28.00 would be a confirmation of the trendline breakout and should increase the market's confidence in this scenario and can help speed ANF up towards 34.50 in the summer months, and possibly the 40.00 handle later in the year.