It is far from being all the shares which had risen to the skies on the u.s. stock markets lately. It is even so that some people seem to toil hard to gain a foothold and establish a positive trend. On the stockholm stock exchange, HM finally got some air under the wings, and today we are looking at branschkollegan GAP that certainly put a greater lågpunkt some time ago, but which, like the HM is interesting to watch for a reversal. Perhaps now is the time!
Get Minianalys Shares Global automatically to your e-mail every week!
The GAP marked a quite so clear the bottom 18 may 2016 at the price of 17 dollars. This occurred after a powerful impulsive decline. In the longer term, it is thus not completely unlikely that the shares shall haunt these levels again. At the same time so we can by experience say that it usually takes her little time before the next major nedgångsfas begin after such a sharp decline in what may be considered to be a relatively stable company.
Since may 18, 2016, the trend is upwards in the to the decline should be corrected. In the Gann-school we learned that the first recovery phase in a new trend to get in on 360 degrees on the Gann wheel with the last phase of the previous decline. In the GAP was the last phase of the previous trend, which was negative, 61 days. That the acceleration then peaks after 183 days, which is on the same line and on the same side of the midpoint on the Gann wheel is the least interesting because it likely marks the closed end of the first phase upwards.
GAP (daily chart)
In a positive trend we are looking for a trevågors movement on the downside, we received a first shock from the 17 november to the 30 december which the market went into a sideways movement for about four months before it once again broke loose on the downside. Purely structurally, we have now three waves to the downside from the peak in november last year.
So why would the bottom be right now? And why would a stock with an incredibly negative momentum just turn on the heel of the here and now? The issue is relevant and it is possible that it will continue pressing down, at the same time, we have a between the phase of the correction that is longer than the first phase-down next to the lågpunkten on december 30. This is a positive development. Furthermore, now the correction lasted about exactly as long as the first recovery phase, i.e. 183 days, which creates a 360-day relationship on the Gann wheel. At the same time, is the wave a and b in the downturn, now at 360 degree angle with the c wave. A trend can only turn when everything is in place and theoretically there is a great possibility now if the stock manages to hold current levels.
We look at the more classic technical analysis tools, we see that the oscillators are driven in the bottom. Another very interesting indicator is the Bollinger Bands®. The stock has now managed to close outside of these indicating that we should get at least a bounce. The movement on the downside seems simply to have been too excessive in a relatively short period of time.
GAP (daily chart)
In order to not risk being stuck in an outright crash in the GAP, we want to see a bit of strength which may indicate that the above reasoning and analysis of relevance before we act. A positive closing above the 22.50 dollars would be such a signal. Our setup allows for a tight stop which is proposed to be placed at 21.60 dollars. GAP has signaled for gains in the long term, against 37 u.s. dollars, which currently feels optimistic even though it does not surprise us if it would be fulfilled one day. We are in this position, the more modest and sets a target level of 25 dollars and it will then take you from there.
GAP – an overview
Entrance buy
$22.50
Ticker
GPS
Målkurs
$25.00
Market
The NYSE
Emergency exit
$21.60
P/E (est 2017)
11.20
Latest
$22.31
Direct avk. (est 2017)
4.1 %
