3 Ways You Could Have Traded ANF (+135% YTD)
Why It's Important To Track High Volume Gap Ups
Today at a glance:
Chart of ANF
Video Analysis of ANF (usually for paid members but free for everyone today)
Deeper dive into the 3 or 4 ways you could have traded this name
Let’s get going:
So far this year, ANF is up over 130%. It has offered multiple instances to trade and make money to the long side, which makes this name a perfect study.
Let’s see how we could have made $$ trading it:
3 Tradable Instances of ANF
First HVC in November of 2022 around the time the market bottomed.
Highest Volume In The Quarter, Strong Price % Change & DCR
Only a 2-3% drawdown from day 2 entry with 10-12% upside, representing multiples of risk
Weeks later, another entry is offered as price reclaims the HVC after finding support on the 10/20EMA.
Second HVC in May of 2023
Highest Volume in 1 Year, 96% DCR, and 31% Price change on gap up day
5% drawdown from HVC on day 2, takes a couple of sessions to get going on the $30 spot but when it gets through, it goes for 25% gains (over 5R)
Late June, wedge drop triggers and you should be out of position
EMA crossback to downside soon follows
Character change bar was kicker gap up, then confirms strength on retest + support on 10/20EMA in late July. Buyable for sure…
Prior to third gap up, you would have 12.5% gain into EPS. Have to know expected move to know what to do with position.
Third HVC in August of 2023
Action here is a lot like the action in the $30 range
Multiple days of consolidation afterwards, but when price gets through it moves…
I dove a little deeper and recorded a 5-minute walkthrough video on the chart above. Check that out here:
ANF Trading Analysis - Watch Video (click on the underlined link)
To summarize,
ANF has shown substantial growth, up over 130% year-to-date, and presents several trading possibilities. There are three notable instances:
In November 2022, during the market's bottom, ANF had its first High Volume Close (HVC). The stock had a minimal 2-3% drawdown after the second day entry, with significant upside potential of 10-12%.
In May 2023, ANF experienced its second HVC, which had a 5% drawdown on the second day but eventually yielded 25% gains.
In August 2023, a third HVC emerged, resembling the $30 price range action. After some consolidation, the stock made another study-worthy move.
As always, I hope you found value in today’s deep dive.
Talk tomorrow,
Greg
Other resources to study:
2020 Best Charts: https://gregduncan.gumroad.com/l/wmfsd
2021 Best Charts: https://gregduncan.gumroad.com/l/2021
2022 Best Charts: https://gregduncan.gumroad.com/l/2022
Earnings Gap Up Mastery Free Email Course: https://upsideunlimited.com/earnings-gap-course
Consider Becoming A Paid Upside Unlimited Subscriber: https://upsideunlimited.com/sub