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Key resistance ahead for Abercrombie and Fitch (ANF)

Abercrombie and Fitch (ANF) has been on a bullish recovery since July. Let's take a look at the chart and the most recent earnings report.

ANF Daily Chart 8/30

(click to enlarge)

Support found:
- Before July, ANF slid from just above 32.50 to just under 17.00. 
- Price has recovered and tagged 23 this week.

Resistance and overbought condition:
- The market is essentially sideways in 2015-2016, but was bearish before that.
- So if anything, we should have a bearish bias. 
- With the slight bearish bias in mind, we should respect the upcoming resistance area between roughly 23.75 and 25. 
- This is a support/resistance pivot area that also contains the 200-day simple moving average (SMA).
- Now if price indeed moves into this area, note that the RSI will likely reflect overbought conditions (push above 70). 
- If price stalls in the resistance area and forms a bearish divergence with the 4H RSI, we should consider a bearish outlook in the short to medium-term. (at least for a week, up to a couple of months. 

Earnings report from Nasdaq.com:

New Albany, Ohio, August 30, 2016: Abercrombie & Fitch Co. (NYSE:ANF) today reported a GAAP net loss per diluted share of $0.19 for the second quarter ended July 30, 2016, compared to a GAAP net loss per diluted share of $0.01 for the second quarter last year. Excluding certain items, the company reported an adjusted non-GAAP net loss per diluted share of $0.25 for the second quarter, compared to adjusted non-GAAP net income per diluted share of $0.12 last year. The results for the quarter reflect an adverse impact related to year-over-year changes in foreign currency exchange rates of approximately $0.08 per diluted share.
A description of the use of non-GAAP financial measures and a schedule reconciling GAAP financial measures to adjusted non-GAAP financial measures accompanies this release. More on Nasdaq.com