Thursday, Mar 23, 2017
 
 

Foot Locker, Inc. (NYSE: FL)

 

Foot Locker, Inc. operates as an athletic shoes and apparel retailer. The company operates in two segments, Athletic Stores and Direct-to-Customers. The Athletic Stores segment retails athletic footwear, apparel, accessories, and equipment under various formats, including Foot Locker, Lady Foot Locker, Kids Foot Locker, Champs Sports, Footaction, and SIX:02. The Direct-to-Customers segment sell athletic footwear, apparel, equipment, team licensed products, and private-label merchandise through Internet Websites, mobile sites, and catalogs.

Take a look at the 1-year chart of Foot (NYSE: FL) below with the added notations:

1-year chart of Foot (NYSE: FL)

FL has been trending higher, overall, for the past 9 months. During the most recent few months, the stock has created a key price level at $72 (green). In addition, a trendline of support (blue) has formed from the stock’s January low. FL has already bounced off of those supports and looks like it’s moving higher in the short-term.

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The Tale of the Tape: FL has a key level of support at $72, and a trendline of support. A trader could enter a long position near the $72 level, with a stop placed under it. However, a break below $72, and the trendline, could be an opportunity to get short the stock.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT

Follow me on Twitter: @cmtstockcoach

 
 

Christian Tharp, CMT

Want to know which trades to make, how to manage your stops and when to exit your trades? As a CMT with over a decade worth of experience in trading & mentoring traders, I'd like to offer you the opportunity to let me help you overcome all of your obstacles.

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