Earnings Play: Foot Locker

How to play Foot Locker's second quarter earnings release.

Downtrend 1

On Friday, before market, Foot Locker (FL) is anticipated to report second quarter EPS of $0.54 compared to $0.66 a year ago on revenue of approximately $2.0 billion vs. $1.8 billion last year. The company operates an international chain of retail stores offering athletic footware and apparel, and its current analyst consensus rating is 8 buys, 13 holds and 1 sell, according to Bloomberg. 

Technically speaking, on a daily chart, Foot Locker's stock price has been chopping around inside of a sideways channel that began to form in mid-June. The RSI is mixed to bearish and currently sitting at 44. The moving averages are set-up in a bearish manner. Price will likely break below the 26.50 support level and drop towards the 22.25 support level. If price manages to hold up above the 26.50 level, price may try to retest 31.50 before falling again. If price breaks above the 31.50 level, it may try to reach for the last peak at 35.25.       

Source: GAIN Capital, TradingView

Looking at a weekly chart, Foot Locker's stock price has been falling inside of a bearish channel since February 2019. Currently price is holding under the upper trendline and will likely hold below it continuing the pattern. However, if price breaks above the upper trendline and begins to use it as support, it could be the start of a new long-term uptrend.    

Source: GAIN Capital, TradingView

More from Earnings

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account