September the worst month
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Technical Recommendation: Hold
(Click here for ANN fundamental research and company information)
ANN broke above key resistance last week, but the stock has a history of 'false breaks' and with a daily 'key reversal' last Friday we need to be a little cautious at these levels.
The daily RSI is retreating from overbought levels and after a 22% advance over the past month this looks like a logical place for a pause.
But in Monday trading the stock is up by 3% and price is approaching Friday's high ($15.68); depth is impressive and a push above $15.68 would abort last Friday's key reversal, opening the way for higher levels in the short term.
The outlook is clouded at this stage, with resistance in both price and relative-performance terms in close proximity. Until they are decisively broken, it is prudent to sit on the sidelines.
(click image to enlarge)