Abercombie & Fitch slides - Analysis - 25-05-2022

Abercombie & Fitch Company's stock (ANF) skidded in the intraday levels, after downgrading financial forecasts for 2022 due to inflation, which is hurting consumer demand.

The retailed cut down net sales forecasts by 2% from $3.7 billion last week, while expecting a considerable drop in second quarter sales from the previous year's $865 million.

The stock tumbled 28.58%, or 7.64 points, settling at 19.09, with trading volumes surpassing 13.8 million shares, above 10-day averages of 3.5 million shares, amid the dominance of the downward correctional short-term trend, with negative pressure from the 50-day SMA.

Therefore we expect more losses for the stock, targeting the support of 14.64, provided the resistance of 26.47 holds on.

Expected trend for today: Bearish