FL pops to highest close since October 1st
Foot Locker Inc (FL) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FL finished the week 4.41% higher at 49.70 after surging $1.55 (3.22%) today, notably outperforming the S&P 500 (1.42%). This is the biggest single-day gain in over two weeks. The last time we've seen such an unusually strong single-day gain on September 26th, FL gained 1.02% on the following trading day. Today's close at 49.70 marks the highest recorded closing price since October 1st. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 49.58, the stock confirmed its breakout through the prior session high after trading up to $0.25 above it intraday.
Daily Candlestick Chart (FL as at Oct 12, 2018):
Friday's trading range has been $1.08 (2.21%), that's slightly below the last trading month's daily average range of $1.36. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FL. Prices continued to consolidate within a tight trading range between 47.44 and 49.84 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
The market managed to break above the 200-day moving average at 48.19 today.
While the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the nearby swing high at 49.84 where further buy stops might get activated. As prices are trading close to October's high at 51.93, upside momentum could speed up should Foot Locker mark new highs for the month.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 200" stand out. Its common bullish interpretation has been confirmed for Foot Locker. Out of 54 times, FL closed higher 64.81% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 53.70% with an average market move of 1.07%.