Abercrombie & Fitch (ANF) shares consolidating in a bull flag under the monthly value high and a series of narrow weekly closes has made a nice right side of an inverted head-and-shoulders with room to run back to 52-week highs. Shares pulled back to the 38.2% Fibonacci retracement of the big longer-term rally and hitting the ‘ready to run’ scan with MACD nearing a bull cross and RSI reset but crossing back above 50 in a sign of strength. ANF has seen buyers in the November $41 calls and November $44 calls, the latter near 4000X, while the December $41 calls have over 3000 in open interest from 9/30.

Trade to Consider: Long the ANF December $41 Calls for $2.70 or Better