Up first is Foot Locker (FL), the $5 billion shoe and apparel retailer that's behind more than 3,350 mall-based stores spread across a handful of countries. While Foot Locker's price performance over the last year has been alright, its more recent trading setups have been looking a lot uglier. Now a descending triangle pattern points to more downside ahead.
The descending triangle is a bearish pattern that's formed by downtrending resistance above shares and horizontal support below them (in this case at $31.50). Essentially, as FL bounces between those two technically significant price levels, it's getting squeezed closer and closer to a breakdown below support. When that breakdown happens, traders have a sell signal for this stock.The triangle in Foot Locker has been setting up since all the way back in the Summer, and that long-term setup means that this pattern has long-term trading implications once a breakdown below $31.50 happens. Until then, there isn't a high-probability trade to be made.
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