Click to EnlargeAbercrombie & Fitch (NYSE:ANF) is potentially setting up a good trade to the short side as the stock is attempting to drift out of a consolidation wedge. After failing to overcome the $78 level in 2011, it finally gave in to the forces and plunged lower in October and November and has been consolidating since.

The weekly chart shows the uptrend dating back to 2008 coming in near $44, which also is the bottom of the consolidation wedge seen on the daily chart.

A solid daily close below $44 should give way to $40 in a two-to-three-week time frame, and by so doing, also break that longer-term uptrend.

One caveat is the upcoming earnings announcement, currently scheduled for Feb. 16. Abercrombie has a tendency to move quite a bit after releasing earnings, so caution is warranted. Even if ANF stock falls below $44 ahead of the earnings announcement and therefore technically sets up this trade to the short side, more conservative traders might want to wait for earnings to pass before taking a stab.