Abercrombie and Fitch (ANF) popped above an 8 month base in what can only be described as a breakout. The apparel retailer industry group only had one stock with an SCTR above 65 yesterday. What a difference a day makes. Now Abercrombie is leading the group. Abercrombie literally jumped to end the building of the 2015 base in the price chart. The volume soared, the SCTR went above 90 and the base looks complete. The SCTR had been working higher and the move today appears to confirm the change in investor sentiment towards the stock.
If you look on the zoom panel, you can see how big today's move was. Perhaps this could be the start of the Santa Claus rally for retailers. The breakout on the chart can only be described as a great start! Just to show how difficult this industry group has been this year, I have included a list of the stocks in the group. Now 3 stocks are above 75.
Abercrombie made a nice move today and a few others did as well. Perhaps this is the start of a wider industry group move.
Good trading,
Greg Schnell, CMT
