On Thursday, after market, Gap (GPS) is expected to report first quarter LPS of $0.66 compared to an EPS of $0.24 a year ago on revenue of approximately $2.3B vs. $3.7B last year. The company is a retailer of apparel and its current analyst consensus rating is 1 buy, 17 holds and 5 sells, according to Bloomberg.
From a technical point of view, Gap's stock price has just gapped up and broken out to the upside of a rising channel that started to form around the beginning of April. The RSI is currently sitting above 60 and has been holding above a rising trend line since late-March. As long as price can hold above the $9.30 support level we should see price continue upward towards the $12.70 resistance level. If price can reach $12.70 then we should see a push towards $14.70. If price slips below the $9.30 support, price will probably fall to around $6.80 to continue the rising channel pattern.
Source: GAIN Capital, TradingView
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.