March 5 Chart of the Day - Abercrombie and Fitch
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
Abercrombie & Fitch (ANF) saw its share price tumble on Wednesday after posting fourth-quarter 2024 results that fell short of expectations. By noon ET, the stock had dropped 14% on the day and was down nearly 60% from its 52-week high.
This sharp decline left investors questioning where the stock might find support.
Today, we’ll analyze ANF’s chart through a price action technical lens to identify potential key levels and where price could be headed next.
We have featured over 425+ Charts of the Day since May 2023 and teach Price Action Trading for FREE to traders who join our Highly Rated Trade Room.
Monthly Chart
On the monthly chart we can see that after setting its $196.99 all time high (ATH) last year price fell dramatically and has swiftly made a series of lower lows and lower highs.
Price is currently testing a long term previous support level in the $80 area and seemingly is attempting to change the down trend.
All very normal price action movement but very unpopular with investors.
Weekly Chart
On the weekly chart we can see where price set its ATH before steadily dropping back down the past several months.
Why then when a company makes ATHs can price quickly drop back down?
For a variety of reasons including maybe this was a case of traders and investors taking some profits off the table.
Regardless, it's clear to see for the past couple of years price has been making a series of higher highs and higher lows /aka/ an uptrend.
It goes without saying though, the only guarantee in the markets is that price cycles. It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
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