Sneaker retailer Foot Locker (FL) reported a top-line and bottom-line beat to shareholders Friday. The retailer also lifted its full-year expectations after reporting an unexpected rise in same-store sales in the third quarter. It's positive news but let's check out the charts anyway.
In this daily bar chart of FL, below, we can see that prices gapped higher, but have quickly retreated. FL made a low in July followed by a rally into September. Prices recently pulled back to the $30 area where buyers have been attracted to since early March. Prices are above the 50-day and 200-day moving averages. The On-Balance-Volume (OBV) line has risen since early March and is positive. The Moving Average Convergence Divergence (MACD) oscillator is close to crossing above the zero-line for a buy signal.
In this weekly Japanese candlestick chart of FL, below, we see a mixed picture. Prices are in a sideways pattern after a decline. The 40-week moving average line is bottoming. The weekly OBV line has been rising since February. The MACD oscillator is just below the zero-line.
In this daily Point and Figure chart of FL, below, we can see an upside price target in the $42 area.
In this second Point and Figure chart of FL, below, we used weekly price data. Here the software shows a price target in the $54 area.
Bottom line strategy: I know the risk level for anyone looking to buy FL -- a close below $29, but I am not so sure I want to be a buyer just yet.
