FL runs into sellers around 41.26 for the third day in a row
Foot Locker Inc. (FL) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FL finished the week -0.25% lower at 40.38 after losing $0.58 (-1.42%) today on low volume, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (FL as at Feb 14, 2020):
Friday's trading range has been $0.93 (2.26%), that's slightly below the last trading month's daily average range of $1.07. 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 slightly higher than usual for FL. Prices continued to consolidate within a tight trading range between 39.90 and 41.26 where it has been caught now for the last three trading days.
Regardless of a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Black Candle which are both known as bearish patterns. The last time a Black Candle showed up on Monday, FL actually gained 1.36% on the following trading day.
After spiking up to 41.26 during the day, the market found resistance at the 100-day moving average at 41.25. Foot Locker ran into sellers again today around 41.26 for the third trading day in a row after having found sellers at 41.08 in the prior session and at 41.25 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Foot Locker. Out of 97 times, FL closed higher 55.67% 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 57.73% with an average market move of 0.65%.