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- 1 Foot Locker stock price (NYSE: FL) showed a decent recovery from the 52-week low.
- 2 FL stock price trying to reach the 50-day EMA.
- 3 Foot Locker Inc. missed the EPS as well as Revenue estimates.
Foot Locker stock price (NYSE: FL) recovered approximately 23% from the 52-week low. However, the price lacked positive momentum and seems to be getting stuck into the narrow range consolidation.
FL stock is in a downtrend and formed a bearish pattern. From May 2023 to mid-August, FL stock price consolidated in the range between $24.00 to $30.00. Buyers had tried to form a long-term base but the disappointing quarter results price broke the lower range.
Foot Locker Inc. released the previous quarter earnings on August 23, 2023. It reported an EPS of 0.04 and reported a revenue of $1.864 Billion. The company failed to meet the EPS estimate by 5.65% and revenue estimate by 0.80%.
Due to this FL stock reacted negatively and showed a massive gap down of 28%. However, after the gap down the sell-off took a halt and showed a minor recovery.
Foot Locker stock price closed the previous session at $18.15 with an intraday rise of 1.57%. The market capitalization stands at $1.71 Billion.
Will Foot Locker Stock Price Continue the Recovery?
Foot Locker stock price (NYSE: FL) is trying to recover from its lows. However, the stock has left a massive gap in quarterly earnings. So the gap zone will act as a strong hurdle for the bulls.
Until buyers are able to break the $20.00 hurdle the price will remain in the bears’ grip. However, if the recovery continues and buyers succeed in breaking the $20.00 hurdle then a sharp rise toward $24.00 is possible.
On the other hand, if the price faces rejection from $20.00, then it is expected to continue the consolidation in an existing range.
FL Stock Price Corrected 51% From its YTD High
FL stock price corrected a lot from its YTD high. So, the downfall may halt soon. If the price continues to consolidate for a few months in the existing range, then it might be an indication of the base formation.
However, the buyers look reluctant to build fresh long positions so a pullback rally is needed to regain the confidence of investors.
The MACD curve sloping sideways indicates more consolidation is possible. The RSI at 37 is recovering from the oversold territory; so it may reach the neutral zone.
Conclusion
Foot Locker stock price (NYSE: FL) recovered 23% from the 52-week low. However, the analysis suggests, that sellers are active in FL stock so prices are likely to continue the consolidation.
Technical Levels
- Resistance levels: $20.00 and $24.00
- Support levels: $15.00 and $14.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
