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Foot Locker (FL)  was down 5% on Friday, but is rallying off its lows after reporting third-quarter earnings.

Can the stock go on to make a recovery and turn higher? That much isn't clear, but there's at least a clear level to measure against on the downside should bulls want to nibble on the stock.

The decline may have taken bulls by surprise, given that the stock initially traded higher after reporting its results. In any regard, the mixed reaction is in response to a mixed quarter.

While earnings of $1.13 a share topped estimates by 5 cents, revenue of $1.93 billion narrowly missed analysts' expectations. However, sales did grow 3.8% year over year, while comp-store sales growth of 5.7% topped estimates for 5.1% growth. Margins rose from a year earlier as well.

To me, this quarter leans more bullish than bearish, but my job is not to dissect the quarter. Instead, it's to dissect the charts and what the major levels are. With that in mind, let's look at the chart.

Trading Foot Locker Stock

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While 2019 is just a small portion of the five-year weekly chart above, it's not hard to see that it's been a tough year for the stock.

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While shares are only down about 5% Friday, shares are down more than 13% this week. That's part in thanks to recent post-earnings stumbles within the retail sector. That includes Home Depot (HD) , Macy's (M) and others.

However, after hitting a low of $37.31 on Friday, Foot Locker stock reversed off those lows, cementing a key level of support on the weekly chart. Dating back to Q1 2018, the $37.50 to $38 area has played a notable role over the past 18 months.

Given this week's price action, there's certainly risk to a long position in Foot Locker stock. However, those who feel compelled to be long this stock, keep the $37.50 area on watch. Below it and Friday's low is on the table.

If FL stock takes out Friday's low, it's a sign to use caution -- and consider stopping out. Below $37.30 and technically, the summer lows near $33 are on the table.

Should support hold, let's see if we can get a bounce back up over $42.50. A rally that far may take some time, but it would put momentum back with the bulls. Over $42.50 and the pre-market high from Friday of $43.89 is on the table.

Further, it puts the ~$47 area on the table. Not only has $47.50 been a key mark over the years -- much like $37.50 has been -- Foot Locker also has the 50-week and 100-week moving averages in this area.

I'm not sure if FL stock can rally this far -- up almost $9 a share or about 23% from current levels -- but if it does, I'd expect this area to act as resistance.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.