Not Done Yet

Thought the era of $100 torn t-shirts was over? Apparently not… Shares of Abercrombie & Fitch Co. ANF are popping today, currently higher by 3.75%, trading at $71.30. The stock has been under pressure for the past two months, falling from a high of $77.65, which is touched back in late May. More importantly, Abercrombie & Fitch has been filling a very large gap lower, which occurred back in April; this gap had a predicted price target for ANF of at least $59.50 before it would find support, but shares have been battling back and are now sprinting higher. This move higher has also pushed the 20-day moving average above the 50-day; both (along with the 200-day) are now upward-sloping. It appears that bears have shaken out the weak longs in the name, prepping it for higher prices. Think Abercrombie & Fitch moves higher? One way to play it would be by buying the August $75/80 call spread for a net debit of $1.36. Abercrombie & Fitch Co., through its subsidiaries, is a specialty retailer that operates stores and direct-to-consumer operations selling casual sportswear apparel, including knit and woven shirts, graphic t-shirts, fleece, jeans and woven pants, shorts, sweaters, outerwear, personal care products, and accessories for men, women and kids under the Abercrombie & Fitch, abercrombie kids, and Hollister brands.