Foot Locker Tanks 15%, Breaks Head And Shoulders Neckline, Faces Continued Risk
Steve Miller | Mar 02, 2018 11:52AM ET
Foot Locker (NYSE:FL) dropped 15% on Friday morning after beating on earnings but missing Wall Street estimates for revenue and same store sales.
The company posted adjusted earnings per share of $1.26 and total revenue of $2.21 billion, compared to estimates of $1.25 and $2.22 billion respectively. Same store sales grew at a lower than expected pace of 3.7%.
Our analysis of FL’s market cycles on the weekly chart shows the stock failing in its resistance zone. It may continue to face risk as the declining phase of its current market cycle completes. Support is near the $35 level. The market cycles are designated by the purple semicircles at the bottom of the chart.
On the daily chart, FL broke the neckline of a head and shoulders setup and will continue to face risk. This also points to a target around the $35 mark.
For a deeper look at market cycles, including a look at the full version of our “Big Picture Analysis,” become a free YouTube channel.
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