ANF rocket fuel primed: Price Discovery Activated
Updated
Greetings Everyone,
I couldn’t delay sharing this exciting analysis on Abercrombie & Fitch (ANF), as it’s showing a significant technical setup that demands immediate attention.
Supplementary Photos:
https://www.dropbox.com/scl/fo/tavipoim4t3u2ehau0imi/ALm6MRj212mR40UdTN4fqyA?rlkey=tae1c7zcecixd7ge8oqk6zmko&st=3zuim1ev&dl=0
🌀 ANF’s Fourth Wave Triangle: What’s Unfolding?
Abercrombie & Fitch is currently forming a classic 4th wave triangle as part of a larger Elliott Wave structure. Based on my analysis, it appears this consolidation phase has just completed, setting the stage for a potential breakout into the 5th wave. Here’s why this matters:
📈 Key Insights into ANF’s Wave Structure
Fourth Wave Triangles in Elliott Wave Theory
Fourth waves often manifest as contracting triangles—periods of lower volatility and sideways price action.
These patterns serve as a pause in the trend before the final impulsive wave (Wave 5).
ANF’s price action fits this structure perfectly, with decreasing volume during consolidation, a hallmark of Elliott Wave triangles.
What’s Next?: If the triangle breakout is confirmed, I anticipate a strong 5th wave rally.
Support and Resistance Zones
The lower boundary of the triangle is providing robust support, while the breakout level near the upper resistance aligns with key Fibonacci retracement levels.
Monitor for volume spikes as price approaches the breakout zone—this will validate the bullish move.
Volume Dynamics
Similar to what we’ve seen in past examples (like Chainlink’s accumulation breakout), volume during the breakout phase is crucial. ANF recently showed strong buying pressure near the triangle’s apex, indicating potential momentum.
📊 Strategy and Risk Management
To maximize this opportunity, here are the key levels and strategies to consider:
• Entry Point: A confirmed breakout above the triangle’s resistance with sustained volume.
Stop-Loss: Place stops just below the triangle’s lower boundary to limit downside risk.
Target: Based on Elliott Wave projections, the 5th wave could aim for 1.618 extension of Waves 1–3. Keep this level in focus as a profit-taking zone.
Invalidation: A breakdown below the triangle would signal that the 4th wave correction is incomplete or that the larger wave structure is failing.
Why This Setup is Important
Abercrombie’s breakout would align with:
• Broader market recovery trends.
• Improved earnings performance (as seen in its Q3 highlights).
• Continued strength in consumer spending and brand expansion efforts.
Closing Thoughts
This is a pivotal moment for ANF. With the completion of the 4th wave triangle
I couldn’t delay sharing this exciting analysis on Abercrombie & Fitch (ANF), as it’s showing a significant technical setup that demands immediate attention.
Supplementary Photos:
https://www.dropbox.com/scl/fo/tavipoim4t3u2ehau0imi/ALm6MRj212mR40UdTN4fqyA?rlkey=tae1c7zcecixd7ge8oqk6zmko&st=3zuim1ev&dl=0
🌀 ANF’s Fourth Wave Triangle: What’s Unfolding?
Abercrombie & Fitch is currently forming a classic 4th wave triangle as part of a larger Elliott Wave structure. Based on my analysis, it appears this consolidation phase has just completed, setting the stage for a potential breakout into the 5th wave. Here’s why this matters:
📈 Key Insights into ANF’s Wave Structure
Fourth Wave Triangles in Elliott Wave Theory
Fourth waves often manifest as contracting triangles—periods of lower volatility and sideways price action.
These patterns serve as a pause in the trend before the final impulsive wave (Wave 5).
ANF’s price action fits this structure perfectly, with decreasing volume during consolidation, a hallmark of Elliott Wave triangles.
What’s Next?: If the triangle breakout is confirmed, I anticipate a strong 5th wave rally.
Support and Resistance Zones
The lower boundary of the triangle is providing robust support, while the breakout level near the upper resistance aligns with key Fibonacci retracement levels.
Monitor for volume spikes as price approaches the breakout zone—this will validate the bullish move.
Volume Dynamics
Similar to what we’ve seen in past examples (like Chainlink’s accumulation breakout), volume during the breakout phase is crucial. ANF recently showed strong buying pressure near the triangle’s apex, indicating potential momentum.
📊 Strategy and Risk Management
To maximize this opportunity, here are the key levels and strategies to consider:
• Entry Point: A confirmed breakout above the triangle’s resistance with sustained volume.
Stop-Loss: Place stops just below the triangle’s lower boundary to limit downside risk.
Target: Based on Elliott Wave projections, the 5th wave could aim for 1.618 extension of Waves 1–3. Keep this level in focus as a profit-taking zone.
Invalidation: A breakdown below the triangle would signal that the 4th wave correction is incomplete or that the larger wave structure is failing.
Why This Setup is Important
Abercrombie’s breakout would align with:
• Broader market recovery trends.
• Improved earnings performance (as seen in its Q3 highlights).
• Continued strength in consumer spending and brand expansion efforts.
Closing Thoughts
This is a pivotal moment for ANF. With the completion of the 4th wave triangle
Trade active
Abercrombie & fitch showcased the strength and value of buying stock market leaders. An idea that William O’Neil had deep fascination in.
On December 12, ANF rallied from its local bottom $133 & without pause quickly striking its short term peak at $152 a 14% move.
Price shortly retraced from the peak down to $144 what the price did next was shocking — amidst the broad market sell off ANF gapped up from $145 to $152. Defying gravity.
What’s on the horizon? A short term barrier has formed at the previous peak of $156.57. A potential cool of might take place while AnF loads up for its next move. Can we see $160 next? Stay tuned!
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.