Joel Kruger suggests this interesting Equities in his section Equities of interest :
Abercrombie & Fitch Co. (NYSE: ANF)
Are the clothes really that great? I don’t get it….Nevertheless, this obviously isn’t relevant to the analysis here and clearly the company is doing something right. Still, I will defer to my technical expertise and find my legitimate bearish view here. This is a market that is now well overextended on the daily chart, with the daily RSI recently breaking above 80. A very necessary and healthy corrective pullback is warranted, and any additional gains should be very well capped around $48.65, which represents the 78.6% fib retracement off of the March-August high-low move. Monday’s doji close could be the initial sign of the anticipated reversal, and a break back below $46.70 will help confirm. Look for setbacks to extend towards the $40 area at a minimum over the coming days. Only a daily close above $51 negates.
