Foot Locker (FL) was analyzed back in December, when I wrote, "Foot Locker has improved after a long decline, but it needs to build a good base pattern to get me interested. If FL pulled back to test the rising 50-day average line, I would probably probe the long side at that point." This month FL has been testing the rising 50-day line so the question is whether I still like it? Let's review the latest charts.
In this updated daily bar chart of FL, below, we can see that FL rallied above the still declining 200-day line in January. The 50-day moving average line crossed above the 200-day line early this month for a so-called bullish "golden cross." The On-Balance-Volume (OBV) line turned higher in November and was strong into the end of January. The line has been neutral the past five weeks. The Moving Average Convergence Divergence (MACD) oscillator is on the zero line (neutral) but its next move up or down will be driven by the price action.
In this weekly chart of FL, below, we can see that prices are above the declining 40-week moving average line. The weekly OBV line is overall positive and the weekly MACD oscillator just crossed above the zero line for an outright go long signal.
In this Point and Figure chart of FL, below, we can see a small breakout at $50.01 and a price target of $55.85.
Bottom line -- the charts and indicators of FL have gotten better since December but they are not attractive on both time frames (daily and weekly) so I am neutral or standing aside on FL for now.
