Abercrombie ANF technical outlook – market update

The ANF weekly chart is another example of plenty, which shows we need another 2-3 weeks to make the final lows for this leg by going lower. The low will be somewhere in the 25 area but as you can see, even a drop below 20 is possible. Against the fundamentals, this chart also shows that we also will have a severe rally at some point of 9 weeks – but keep in mind that is only a trading rally and for stock owners a chance to get out of stocks, if they still hold on to them.

The gap in the NDX seems to hold so far but only the final hour will tell if that was a valuable observation but the fairly low volume is not speaking for selling pressure for now. One concentration for SPX options is the 950 strike for OCT we had one at 1000 as well – so my assumption is the market might try to hold between this two strikes until Friday’s expiration. Basically, we will fall the next 2-3 weeks though.

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~ by behindthematrix on October 15, 2008.

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