Stock Price Trends

Abercrombie & Fitch Company (ANF)

Abercrombie & Fitch Co., is a specialty retailer. The company is headquartered in New Albany, Ohio.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is increasing.
  • The growth rate of the primary trend is 253.36% per annum.
  • ANF price at the close of November 20, 2024 was $136.81 and was lower than the bottom border of the primary price channel by $39.06 (22.21%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 44.67% per annum.
  • ANF price at the close of November 20, 2024 was inside the secondary price channel.
  • The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of ANF price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: June 30, 2022
End date: August 27, 2024

a = -0.7900

b = 0.0035

s = 0.1777

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0035) – 1
= 253.36%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1777) – 1
= 103.55%

June 30, 2022 calculations

Top border of price channel:

Exp(Y655)
= Exp(a + b × X655 + 2 × s)
= Exp(a + b × 952 + 2 × s)
= Exp(-0.7900 + 0.0035 × 952 + 2 × 0.1777)
= Exp(2.8578)
= $17.42

Bottom border of price channel:

Exp(Y655)
= Exp(a + b × X655 – 2 × s)
= Exp(a + b × 952 – 2 × s)
= Exp(-0.7900 + 0.0035 × 952 – 2 × 0.1777)
= Exp(2.1471)
= $8.56

August 27, 2024 calculations

Top border of price channel:

Exp(Y1,197)
= Exp(a + b × X1,197 + 2 × s)
= Exp(a + b × 1,741 + 2 × s)
= Exp(-0.7900 + 0.0035 × 1,741 + 2 × 0.1777)
= Exp(5.5865)
= $266.80

Bottom border of price channel:

Exp(Y1,197)
= Exp(a + b × X1,197 – 2 × s)
= Exp(a + b × 1,741 – 2 × s)
= Exp(-0.7900 + 0.0035 × 1,741 – 2 × 0.1777)
= Exp(4.8758)
= $131.08

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 253.36% per annum.
  • ANF price at the close of November 20, 2024 was $136.81 and was lower than the bottom border of the primary price channel by $39.06 (22.21%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: May 29, 2024
End date: November 20, 2024

a = 7.8539

b = -0.0016

s = 0.0733

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0016) – 1
= -44.67%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0733) – 1
= 34.06%

May 29, 2024 calculations

Top border of price channel:

Exp(Y1,135)
= Exp(a + b × X1,135 + 2 × s)
= Exp(a + b × 1,651 + 2 × s)
= Exp(7.8539 + -0.0016 × 1,651 + 2 × 0.0733)
= Exp(5.3232)
= $205.04

Bottom border of price channel:

Exp(Y1,135)
= Exp(a + b × X1,135 – 2 × s)
= Exp(a + b × 1,651 – 2 × s)
= Exp(7.8539 + -0.0016 × 1,651 – 2 × 0.0733)
= Exp(5.0301)
= $152.95

November 20, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(7.8539 + -0.0016 × 1,826 + 2 × 0.0733)
= Exp(5.0394)
= $154.39

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(7.8539 + -0.0016 × 1,826 – 2 × 0.0733)
= Exp(4.7463)
= $115.16

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 44.67% per annum.
  • ANF price at the close of November 20, 2024 was inside the secondary price channel.