ANF recently bounced off 100 MA. Will the rise continue?
Updated
https://www.tradingview.com/x/0vUruYMI/
ANF's Recent Pullback and Future Outlook
ANF has experienced a significant pullback from its all-time highs after its most recent earnings report. This trend isn't unique to ANF, as even Lululemon (LULU), a market leader, has seen a drawdown since the year's beginning.
However, I believe ANF's current rise is likely a short-term bounce, not a sustained trend reversal. Since the last earnings release, the upward trend has stalled, and a downward trend seems to be taking precedence. The recent rise is unlikely to last long.
Several factors support this view:
Earnings Season: Upcoming earnings reports from various companies might reveal difficulties compared to the strong performances of mega-cap stocks at the end of last week. This could continue the downward trend for ANF.
Federal Reserve Meeting: The market awaits Chair Powell's interest rate decision on Wednesday. With inflation persisting, the Fed may be forced to maintain higher rates for a longer period, potentially impacting consumer spending and retail stocks like ANF.
Technical Analysis:
Technically, ANF is approaching resistance at the channel and the 50-day moving average (MA). Based on this, a pullback starting around $123 is expected. If the trend of lower highs and lower lows continues, ANF could fall below its 100-day MA, potentially reaching much lower levels before retesting the 200-day MA.
ANF 
LULU 
RL
ANF's Recent Pullback and Future Outlook
ANF has experienced a significant pullback from its all-time highs after its most recent earnings report. This trend isn't unique to ANF, as even Lululemon (LULU), a market leader, has seen a drawdown since the year's beginning.
However, I believe ANF's current rise is likely a short-term bounce, not a sustained trend reversal. Since the last earnings release, the upward trend has stalled, and a downward trend seems to be taking precedence. The recent rise is unlikely to last long.
Several factors support this view:
Earnings Season: Upcoming earnings reports from various companies might reveal difficulties compared to the strong performances of mega-cap stocks at the end of last week. This could continue the downward trend for ANF.
Federal Reserve Meeting: The market awaits Chair Powell's interest rate decision on Wednesday. With inflation persisting, the Fed may be forced to maintain higher rates for a longer period, potentially impacting consumer spending and retail stocks like ANF.
Technical Analysis:
Technically, ANF is approaching resistance at the channel and the 50-day moving average (MA). Based on this, a pullback starting around $123 is expected. If the trend of lower highs and lower lows continues, ANF could fall below its 100-day MA, potentially reaching much lower levels before retesting the 200-day MA.
ANF LULU RL Note
That was a real rough run up. I think going forward from here there might actually be some significant down side remaining for these consumer non-durable stocks.
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