Back in May, Gap (GPS) returned to the Green Favored Zone of the SIA S&P 500 Index Report for the first time in over two years. Since then, the clothing retailer has continued to climb in the rankings moving up another 10 spots yesterday to 2nd place.
Gap (GPS) shares staged a major breakout yesterday, blasting through the top of a $10.00 to $14.00 trading range and also completing a bullish Ascending Triangle pattern. Initial upside resistance appears near the $15.00 round number then the $18.00 to $18.50 range where a measured move and previous resistance converge. Initial support moves up to the 200-day average near $13.00.
Since breaking out of a Spread Triple Top base back in May, Gap (GPS) shares have continued to trend upward. Earlier this month, the shares broke out of a symmetrical consolidation triangle and yesterday they blasted through $13.90, completing a bullish Spread Double Top pattern, snapping a long-term downtrend resistance line and signaling the start of a new advance.
Next potential upside resistance tests on trend appear near $15.65 where a horizontal count and previous column low converge, then $16.30 where a prior low and a vertical count converge, and $18.40 near previous column highs. Initial support appears near $12.85 based on a 3-box reversal.
With its bullish SMAX increasing to a perfect 10, GPS is exhibiting near-term strength across the asset classes.
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