Last week the GAP (GPS) reported an increase in June’s same-store monthly sales of 2%. This reversed a year long trend of reductions in monthly sales. As a result, the stock jumped nearly 5% from where it opened on Thursday to where it closed on Friday. Since early May, the GAP has being trending up, which is a much different picture from what the stock has shown for a long while.
Based on a brief technical analysis (illustrated in the chart below), if the overall market does not does not break to the negative, it would not be surprising to see the GAP continue to ‘melt up’ in the coming months.