Same-store sales plummet at Abercrombie & Fitch

ANF is also going to face quite a hurdle with the holiday shopping season approaching. Will parents be willing to drop $85 for a sweater, or nearly $100 for a pair of jeans for their kids? Some will , but I'm guessing that many won't. The same thing with the back-to-school shopping season -- how many parents are willing to pay $35 for a t-shirt because it says Hollister? Again, some will, but I bet many won't. Will the stock be able to withstand further same-store sales disappointments? We could soon find out.

ANF opened at $31.30 this morning, about 2% lower than Wednesday's closing price. The biggest danger for the stock is a technical hurdle that it recently cleared but will now have to face again. Shares of the retailer were relying on the support of their 10-month moving average, but this trendline should now be in a position to act as resistance. This fact doesn't mean that the stock is doomed for failure, but resistance isn't exactly what ANF can use right now. The stock had actually put together a nice little run starting early in the year, but that could now come to an end.