Abercrombie & Fitch
It's been a tough year for apparel retailer Abercrombie & Fitch (ANF) -- shares of the mid-cap clothing stock have slid 10% year-to-date, underperforming the broad market by a considerable margin. But investors look due for a reprieve.
ANF has spent most of the second half of the year consolidating sideways in a channel, bouncing around between resistance at $40 and support down at $30. But that changed last week with Abercrombie's third quarter earnings call -- the firm announced solid numbers that spiked shares by almost 34% overnight. More importantly, it broke ANF out of the channel that had been hamstringing shares in that range. With resistance at $40 long gone, this stock has more room to run higher.
ANF's next meaningful resistance level comes in at $53, giving this stock considerable upside before hitting a pocket of previously known supply of shares. If you decide to bet on more upside in ANF, I'd recommend keeping a tight stop just below $40 -- there's still a lot of volatility in this name.
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