ANF ready for a big storm

NYSE:ANF   Abercrombie & Fitch Company
THE CONSISTENT TRADES analyze ANF as a bearish/weak fundamental stock and therefore would be traded only in a short position.

ANF daily is in a rising wedge pattern which after the breakout is very bearish. On Friday it shot up but got rejected from the trendline and formed a shooting star reversal pattern.

Volume does not confirm this price action which is bearish.
However, it is above all major MA which is bullish.
RSI has big and nasty bearish negative divergences which indicate a huge drop is incoming. Only only those divergences are smaller it is bigger and bigger because while the price is moving up RSI is moving down, very bearish.
The same situation is with MACD. Very bearish.

Overall: ANF even though it had nice bullish momentum, RSI and MACD are showing us there is no real bull market here on this stock. An imminent drop is very likely and drops out of a rising wedge would trigger a perfect short opportunity. For more educated traders this level could already be a short position with a stop loss of 1/4 of the last candle above the last high.


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