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Abercrombie and Fitch (ANF) Could Become Bullish Above 13.00

In the previous look at ANF in June, we discussed the key support pivot at 12. We made a reward to risk assessment of entering a long position just above 12.00. Almost a month later, price is still within the 12-13 range, but it did respect 12 as support again, and is now threatening the resistance at 13.00.

ANF Daily Chart

(click to enlarge)

Not Bearish Signs:
- Last time, we saw the RSI hold above 40, which is a bullish sign if it had already pushed above 70 earlier - and this is the case.
- Price has been holding above 12 and the 100-day simple moving average (SMA), which is another sign that bulls are anchoring and ready to buy up ANF.
Resistance:
- We had signs that the market is no longer bearish and maybe turning bullish.
- But there is a key resistance around 13, which involves a falling trendline, the 200-day simple moving average and a previous resistance pivot. 
- This means, a break above 13.00 will be critical in opening up the bullish outlook.
Limited Bullish Outlook:

- If the bullish outlook materializes, we discussed a conservative bullish outlook to 14 and an aggressive one to 17 or possibly just under 17.
- These are bullish targets in the short to medium-term (weeks to months), but would be within the context of the long-term bearish trend see on the weekly chart below.
ANF Weekly Chart

(click to enlarge)