FL closes within previous day's range after lackluster session
Foot Locker Inc. (FL) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
FL finished the month 5.27% higher at 29.16 after edging lower $0.27 (-0.92%) today, strongly underperforming the S&P 500 (1.54%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (FL as at Jun 30, 2020):
Tuesday's trading range has been $0.82 (2.81%), that's far below the last trading month's daily average range of $1.79. Weekly volatility is also lower, being way 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 26.98 and 29.76 where it has been caught now for the whole last trading week.
One neutral candlestick pattern matches today's price action, the Doji. The last time a Doji showed up on May 27th, FL lost -2.92% on the following trading day.
Prices are trading close to the key technical resistance level at 30.02 (R1). After having been unable to move above 29.53 in the previous session, Foot Locker ran into sellers again around the same price level today, missing to move higher than 29.65.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the close-by swing high at 30.34 where further buy stops might get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Doji" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Foot Locker. Out of 136 times, FL closed higher 52.94% 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 58.82% with an average market move of 0.43%.