Gap Inc. (GPS) is unable to keep up with the S&P 500 (SPY) broader market making news highs. The GPS gap down has put the stock into new price discovery looking for solid demand.
GAP REVIEW
On October 11, 2013 GPS gapped down breaking through a daily pivot of demand damaging the longer term trend. See Figure 1 below.
KEY LEVEL
GPS created supply over head into $37.50 with this bearish gap down. Key Demand levels exists at $34.50 and $32.50.
THE TRADE
Look to short GPS at $36.10 with a stop placed over $37.50. Targets are $34.50 and $32.00.
Disclosure: Newsletter Subscribers are short from 10/22/2013