Leading apparel retailer Gap Inc. (NYSE:GPS) is coming under some selling pressure. Traders should note that Gap's stock topped out in late March at $42.25 a share. Today, the stock is trading lower by 0.69 cents at $40.19 a share. Swing traders must now watch the $38.15 level as the next major support area for a bounce and potential low in the stock. This was a price level where the stock tested and held in November 2014. Often, when old break-out levels get tested, they will be good buying opportunities in the future.
Gap will report earning on May 21, so you have to remember that it's always risky to trade in front of an earnings announcement.
