FL unable to break through key resistance level
Foot Locker Inc. (FL) Technical Analysis Report for Oct 11, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, FL finished the week 3.22% higher at 42.96 after surging $0.97 (2.31%) today, strongly outperforming the S&P 500 (1.09%).
Daily Candlestick Chart (FL as at Oct 11, 2019):
Friday's trading range has been $0.84 (1.97%), that's below the last trading month's daily average range of $1.12. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for FL.
Unable to break through the key technical resistance level at 43.28 (R1), the market closed below it after spiking up to 43.31 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on October 4th, FL lost -0.46% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
As prices are trading close to October's high at 43.86, upside momentum could speed up should Foot Locker mark new highs for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Foot Locker. Out of 165 times, FL closed higher 55.15% 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 56.36% with an average market move of 0.62%.