Foot Locker (FL) is a mall retailer for athletic footwear and apparel. And shares of Foot Locker are in bull market territory, 37% above the June 27 low. The stock is also nearly in correction territory, at 9.7% below its all-time high.
Analysts expect the retailer to earn $1.10 a share before the opening bell on Nov. 18. Foot Locker has been a top performer following recent quarterly results, but the stronger dollar could be a setback in this quarter's results.
Here are the daily and weekly charts for Foot Locker.
The daily chart features the Fibonacci retracement levels of the stock's decline from its Sept. 25, 2015, high to its June 27 low. Retracements are 23.6%, 38.2%, 50% and 61.8% of this bull market rally.
The weekly chart shows a red line through the price bars, marking the key weekly moving average (a five-week modified moving average). The green line is the 200-week simple moving average, the "reversion to the mean."
The study in red along the bottom of the chart is weekly momentum (a 12x3x3 weekly slow stochastic), which scales between 00.00 and 100.00, where readings above 80.00 indicate overbought and readings below 20.00 indicate oversold.
A negative weekly chart shows the stock below its key weekly moving average, with weekly momentum declining below 80.00 in a trend toward 20.00. A positive weekly chart shows the stock above its key weekly moving average, with weekly momentum rising above 20.00 in a trend towards 80.00.
Here's the daily chart for Foot Locker.
Courtesy of MetaStock Xenith
The daily chart for Foot Locker shows the Fibonacci retracement levels of the decline from its Sept. 25, 2015, high of $77.25 down to its June 27 low of $50.90. Foot Locker closed Wednesday at $69.72, up 7.1% year to date. But it is 9.7% below its Sept. 25, 2015, high. The stock is in bull market territory, 37% above the June 27 low.
Since setting the low, shares of Foot Locker rebounded to the 23.6% retracement of $57.13 on July 8. After staying on this step until Aug. 3, the stock climbed to the 38.2% retracement of $60.97 on Aug. 12, when the stock also tested its 200-day simple moving average, then at $61.77.
Foot Locker beat analysts' earnings-per-share estimates on Aug. 19 and gapped above the 200-day SMA and the 50% retracement of $64.07 and continued trading higher. The 61.8% retracement of $67.17 was a magnet from Aug. 19 until Nov. 9. The recent high of $73.37 was set on Nov. 14, making the 61.8% retracement the key level to hold in reaction to earnings before the opening bell on Friday.
Here's the weekly chart for Foot Locker.
Courtesy of MetaStock Xenith
The weekly chart for Foot Locker ended last week positive, but faces a downgrade this week given a negative reaction to earnings. If the stock ends the week below its key weekly moving average of $68.04, the weekly chart will be downgraded to negative, indicating risk to its 200-week simple moving average of $52.84.
The weekly momentum reading is projected to slip to 79.13 this week, down from 82.38 on Nov. 11, which would pull momentum below the overbought threshold of 80.00.
Investors looking to buy Foot Locker should consider buying weakness to $62.66 and $57.86, which are key levels on technical charts until the end of November and until the end of 2016, respectively. Investors looking to reduce holdings should consider selling strength to $72.81 and $76.88, which are key levels on technical chart until the end of 2016. Note the first level has already been tested this week.