GAP set up for 2-year base breakout

The Gap (GAP) is forming a potential basing pattern from early 2024 into early 2026, suggesting a constructive longer-term setup.

We maintain confidence in this developing bullish structure while price holds above chart support at 24.78–24.54, which is reinforced by rising 26- and 40-week moving averages near 23.74–23.37.

A decisive rally above the neckline zone at 28.58–29.29 would confirm this 2-year bullish consolidation and imply further upside beyond 30.75–31.53 (the June 2024 spike high at 30.75 and the 61.8% extension of the May 2023–June 2024 rally projected from the April 2025 low). Successful follow-through would open the door toward the 2021 peak at 37.63 and ultimately the pattern objective and 100% extension at 40.00–40.52.

On a relative basis, GAP is stabilizing versus the S&P 500. Holding above its weekly moving averages relative to the index would keep the stock constructive and supportive of a sustained leadership turn.

Chart 1: The Gap (GAP) (top) and relative to the S&P 500 (bottom)