The Gap, Inc. (GPS) was last reviewed in September, and my bottom line said that, "Prices could rest or take a breather in the short-run but the advance looks like it can carry further on the upside. Our price targets are $29, $30 and $32. Longs should consider raising their sell stop protection to their entry point. Never (did I say never?) let a profit turn into a loss."
Looking at the charts of GPS today I can see that all our price targets were reached before a correction began to unfold in February.
In this daily bar chart of GPS, below, we can see that prices corrected lower after a late January high. In May we saw the gap from November filled and a small double bottom pattern around $28.
Recently prices rallied above the rising 200-day moving average line and the declining 50-day line. A close above the May high around $33 will be bullish.
The daily On-Balance-Volume (OBV) line shows a rising trend the past 12 months and shallow dips even when prices corrected. Even though prices have not made a new high the OBV has made a new high. Breakouts to new highs can happen on the OBV line before prices break out.
The Moving Average Convergence Divergence (MACD) oscillator gave a cover shorts buy signal last month and could give an outright go long signal this month.
In this weekly bar chart of GPS, below, we can see that prices have rallied back above the rising 40-week moving average line. The pullback to $28 looks like a retest of the top of the base pattern that goes back to late 2015.
The weekly OBV line is longer-term bullish but short-term neutral. A new high for the weekly OBV line is not far away, however. The weekly MACD oscillator has narrowed and could cross to the upside for a fresh go long signal.
In this Point and Figure chart of GPS, below, we can see an upside price target of $38 being projected.

Bottom line: Traders could re buy GPS on any weakness towards $30 risking a close below $28. On the upside the $38 area is our price target from our Point and Figure chart. $45 is our potential secondary price target.