I last talked about Abercrombie And Fitch three months ago, when they reported their last quarterly earnings and the charts suggested two shorting opportunities.
Abercrombie And Fitch…Setting Up For A Short
Despite a 20% move higher, I think A&F is getting close to levels for shorting the stock, but that’s just my bias, lets go to the charts. The chart suggests to short price at the daily supply at $27.50, but the better level is at $30.50.
Shares of Abercrombie & Fitch tanked Wednesday morning after the teen apparel retailer reported weaker-than-expected same-store sales growth and said it plans to close three more of its flagship stores, including a Hollister location in New York.
Looking to the second quarter, Abercrombie said it expects net sales to be flat to up 2%, short of analysts’ estimates for 2.8% growth. For the year, Abercrombie is calling for net sales to be up 2% to 4%.
“Clearly, the second quarter outlook looks to offset the first quarter upside relative to expectations,” Telsey Advisory Group analyst Dana Telsey said. She said the disappointing second-quarter sales outlook is likely what fueled the stock’s sell-off Wednesday morning.
I missed the trade set up as I don’t keep track of earnings announcements. Needless to say, my target at $18 has almost been hit. Needless to say the Markets can be a gift that keeps on giving if you follow the footsteps of the Smart Money.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.