Abercrombie & Fitch Rallies Off Q2 Beat

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Abercrombie & Fitch

shares are trading higher by $2.50 at $19.77 in Wednesday's session. The catalyst for the rally is a Q2 beat for EPS ($0.12 vs. Est. ($0.04) on better sales ($817.8M vs. $811.5M). Also, the company reported that comps were down four percent. After a sharply higher open ($19.73 vs. Tuesday's close $17.27) it rallied and found resistance at $19.99 and declined to $18.88. The current intraday coincides with pair of highs surrounding the $20 level from August 12 ($20.18) and August 13 ($19.86). Since making its low it has been grinding its way back to the highs for the day. Today's price action is taking place on heavier than average volume. So far, 5M shares have changed hands compared to its 20 day average of 2.9M with over four hours remaining in the session.