Gap Stock Price Levels to Watch as Shares Surge 16% After Earnings Report | Global News Avenue

gap(gapShares of the apparel retailer soared in after-hours trading Thursday after the clothing retailer reported stronger-than-expected third-quarter results and raised its sales outlook.

The company currently expects fiscal 2024 sales volume The company’s growth will be between 1.5% and 2%, compared with previous guidance of “modest growth” as the retailer continues to execute on its plans under CEO Richard Dickson. Progress continues on the turnaround plan. The retailer said it’s off to a strong start to the holiday season.

Gap shares have risen about 5% from the beginning of the year to Thursday’s close, significantly lagging the broader market. S&P 500 Index The return rate during the same period was approximately 25%. The stock rose 16% to $25.50 in after-hours trading Thursday.

Next, let’s take a closer look technical in Gap’s Weekly chart and identify important post-earnings price levels that investors may be concerned about.

Descending Triangle Breakout

Since regaining its 200-week moving average, Gap stock has been trading at descending triangle. While chart watchers often think of this pattern as predicting a price decline, it can also send a bullish signal continue Move if formed within a range uptrendthis is the case on the Gap chart.

In fact, the stock looks set to play a decisive role breakthrough on Friday.

Let’s analyze Gap’s chart to identify a few key overhead price areas to track and outline a key long-term goal support level Worth monitoring.

Key areas of overhead to track

First, the $27 area is worth watching. Investors who have recently purchased the stock merge Stage may consider selling shares within the next few years horizontal line This joins a series of similar trading levels on the chart between April 2017 and June this year.

one volumeA break above this level could see shares climb to around $36, an area on the chart that could attract selling pressure near notable peaks in January 2018 and May 2021.

Investors can predict management fees price target By using a bar pattern to break out of this area, this technique can provide insights into how a bullish long-term continuation move in a stock will play out.

We apply this tool to the Gap chart by: trend The move preceded the descending triangle from May to December last year and repositioned it from the pattern’s lower trendline. The target is expected to be around $52, which is a potential area investors may decide to invest in Lock in profits.

Key long-term support levels to monitor

During periods of weakness in stocks, investors should keep an eye on the $20 level. Investors may view this area as a buying opportunity near the descending triangle’s lower trendline, where a confluence Received support from many parties crests and troughs On the chart from mid-2019 to November of this year.

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As of the date of this writing, the author did not own any of the securities mentioned.