ANF reversal or dead-cat bounce?
NYSE:ANF
ANF has recently pulled back from its all-time high (ATH) following its latest earnings report. Despite strong earnings, same-store sales, and electronic sales growth, and a dynamic inventory selection, concerns about a potential recession have weighed on the stock.
Key Developments:
Recently dropped below the 100-day Moving Average (MA)
Retested the 200-day MA
Bounced off the 200-day MA
Broke out of a triangle formation on a 15-minute timeframe
Broke above the 100-day MA but failed to break above previous support
Expected Outcomes:
Bullish scenario: If ANF bounces off the 100-day MA and reclaims the previous support level, it could retest the 50-day MA, coinciding with the upper limit of the current negative channel. In this case, I would consider near-term put options to hedge against a potential retest of the 200-day MA.
Bearish scenario: If ANF fails to hold above the 100-day MA and the $150 support level, it is likely to retest the 200-day MA.
I am closely monitoring the $150 level and will make decisions based on price action this week. Given the current macro environment, I prefer to be short this position. If the bullish scenario unfolds, I will wait for a retest of the upper channel limit before taking action. With key economic data, including retail sales, being released this week, expect volatility. Regardless of my position, I plan to be short-term and exit before the next earnings report.
