FL tanks, losing $2.49 (-8.49%) within a single day on high volume
Foot Locker Inc. (FL) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
FL finished the week 5.55% higher at 26.83 after tanking $2.49 (-8.49%) today on high volume, strongly underperforming the S&P 500 (0.24%) following today's earnings report. This is the biggest single-day loss in over two months. Trading up to $1.52 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (FL as at May 22, 2020):
FL reported earnings of $-0.67 per share before today's market open. With analysts having expected an EPS of $-0.17, Foot Locker Inc. missed market expectations by -294.1%. The company's last earnings report was released on Feb. 28, 2020, when Foot Locker Inc. reported earnings of $1.63 per share beating market expectations by 3.2%.
Friday's trading range has been $2.63 (9.83%), that's far above the last trading month's daily average range of $1.73. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FL.
Three candlestick patterns are matching today's price action, the Doji, the Long-Legged Doji and the Rickshaw-Man which are known as neutral patterns. The last time a Long-Legged Doji showed up on April 28th, FL gained 8.16% on the following trading day.
After trading as low as 25.24 during the day, the share found support at the 20-day moving average at 25.42.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 25.42.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Long-Legged Doji" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Foot Locker. Out of 33 times, FL closed higher 63.64% 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 two trading days, showing a win rate of 57.58% with an average market move of 0.11%.