Several analysts lowered their price targets on Foot Locker (FL) and suggested that COVID-19 may disrupt the company’s back-to-school shopping season. The stock closed the day down 7.12%. Let’s see what the charts tell us.
Foot Locker (FL) Weekly Chart – annotations by askSlim.com
At askSlim.com we use technical analysis to evaluate price charts of stocks, futures, and ETF’s. We use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.
askSlim.com Technical Briefing: The weekly cycle analysis suggests that FL is in a declining phase with a short-term bottom due to form. Weekly momentum is negative.
On the upside, there is an intermediate-term Fibonacci resistance zone from 37.78 – 41.63. On the downside, there is an intermediate-term Fibonacci extension zone from 30.92 – 27.95. Our analysis suggests that for the bulls to regain control of the intermediate-term, we would likely need to see a weekly close above 44.37.
askSlim.com Sum of the Evidence: FL has a negative weekly cycle pattern with negative momentum. These conditions will likely limit any upside in the stock to the intermediate-term Fibonacci resistance zones beginning at 37.78. There is a likelihood that the stock tests the intermediate-term Fibonacci extension zone beginning at 30.92 by July.
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