Technical analysis
The Gap, Inc., commonly known as Gap Inc. or Gap, is an American retailer of clothing and accessories around the world. Gap was founded in 1969 by Donald Fisher and Doris F. Fisher and is headquartered in San Francisco, California.
GAP stock, after hitting nearly $ 38.00, began a prolonged bearish move which took it to beginning of the year levels.
Despite the bearish trend, we believe the conditions are in place for an upside in the short to medium term.
Bearish channel repeatedly respected by the title: at the moment #GPS is on the bottom with good chances of recovery.
Strong distance from the average at 50 days, looking at previous fluctuations, the stock always tends to rejoin the latter
RSI in oversold territory with ample opportunities for growth in the short-medium term
MACD, well below 0 given the bearish trend of the title, but in possible upward movement
Gap is currently in a strong support area at $ 24.00. We are confident that the stock can reverse to the upside given the sell off in recent months.
Entry range $24.80 - $25.80
Target 1 $28.00
Target 2 $ 31.00
Stop loss $ 22.00
OTB Global Investments
15 September 2021
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