Highlighted in the chart is yet another pattern -- this time in ANF . If the pattern plays to fruition, we should see it fill the gap at $25.60
Fundamentally, Abercrombie is in the midst of a 4 year turn around story as it tries to save its brand after falling out of style. It failed to rally over the past 10 years like every other stock on the planet, so we won't find it as levered to market price action as other stocks. Additionally, it recently reported its 5th consecutive quarter of same-store-sales growth. Furthermore, retail names have been rallying on the back of a solid holiday season.
I think we can buy ANF on a breakout of the neckline at $21.30 with a target of $25.50 and a stop at $19.