• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

The Gap Has Made a Big Upside Run So Book Some Profits

We could see a pullback at some point.
By BRUCE KAMICH
Oct 27, 2020 | 02:30 PM EDT
Stocks quotes in this article: GPS

During Monday's Mad Money program last night, Jim Cramer was bullish on The Gap (GPS) , which is thriving from its Athleta brand. Let's check in on the charts and indicators.

In this daily bar chart of GPS, below, we can see that prices have more than tripled from their early April low. Prices are above the rising 50-day moving average line as well as above the bottoming 200-day moving average line.

The On-Balance-Volume (OBV) line has been stalled the past two months even though prices have made new highs for the move up. This is a bearish divergence and suggests that buyers are not really propelling the upside.

The 12-day price momentum study in the bottom panel shows equal highs from September to October and this too is a bearish divergence when compared to prices making higher highs.  

 
In this weekly bar chart of GPS, below, we still see a bullish picture except that overhead resistance starting at $24 could be a significant hurdle.
 
The 40-week moving average line has started to improve and the weekly OBV line is still pointed up.
 
The weekly MACD oscillator is still in a bullish alignment. 
 
 
In this daily Point and Figure chart of GPS, below, we can see that prices are still in an uptrend but have exceeded the $17 price target. A decline to $18 may start to weaken this chart.  
 
 
 
Bottom line strategy: If you happen to be long GPS from lower levels this may be a good time and location to book some profits as the bearish divergences on the daily chart suggest we could see a pullback at some point. 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Apparel | Retail | Mad Money

More from Investing

Alibaba Is Sold out on the Downside

Bruce Kamich
May 23, 2022 1:26 PM EDT

China at a bearish extreme is an opportunity.

It 'Bears' Repeating: Tune Out the Noise!

Bob Lang
May 23, 2022 1:16 PM EDT

The noise around the markets is loud, distracting and sometimes obnoxious, but if you listen to it, you'll end up making poor decisions.

I've Got Smith & Wesson in the Holster, but the Safety Switch Stays On

Jonathan Heller
May 23, 2022 12:30 PM EDT

I wouldn't jump the gun on this name, but here's why I find it compelling.

Dow Is Poised for an Upside Breakout

Bruce Kamich
May 23, 2022 11:25 AM EDT

Here are our price targets.

It's Hard to Gauge Sentiment Right Now, and That Makes It Tough to Trade

James "Rev Shark" DePorre
May 23, 2022 11:00 AM EDT

Bears and bulls are trying to discern which way the market is flowing, though neither is secure in their position.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:24 PM EDT PAUL PRICE

    An Interesting Chart

    I'm betting heavily that stocks will be way up aga...
  • 10:10 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    "Market Timing for Dummies"
  • 01:44 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10 Portfolio

    We're making a series of trades here.
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login