0IQK trade ideas
Foot LockerRetail in general battered. FL down from $80 to $30... think ultimately we head sub $30 but looking for a bounce here off support into earnings.
Nice juicy gap up into $47
Foot Locker has 120% upsideFor a four weeks the price of FL is staying without moving. But after investigating the waves, we can observed that there is good time to buy. My estimate is that the price cannot go down under 29.95$ since it is the end of the 1st wave. The first target of the 5th wave is about 80%, it is 120% upside.
Possible uptrend on FL?Rebound on FL stock possible:
> oversold on RSI 14
> Demark setup almost completed
> doji on the 7th month
> support line on MA 200
Let's wait the setup to be completed and bullish 9 to confirm the reversal of the trend.
FL breaking flag for upsideFL could try to fill the gap if it starts trending with some volume here. We still need to see some volume come in.
Short FL here with a buy to cover stop at 46.57 Sell FL here with a buy to cover stop at 46.61. FL traded up against resistance on Market Profile pattern and suggests a sell here. FL has under-performed the SPY quite a bit lately. Look slike a good short at the current price
FL will it retest MA line first or just go straight downFL is at a interesting point right now where it could go either possibility that I drew out. I think if retailers remain weak, it might just go straight down so I will be trading it as a day trade on the short side until one of the two possibilities confirm.
FL reversalStrong support at 51. Should support hold, will reverse -- boxes being 1st, 2nd, and 3rd points of exit
Foot Locker Incorporated (FL) Always Rises When This HappensFoot Locker Incorporated has been in a bullishtrend since 2008. It has however, been moving downward since its most recent earnings call. On multiple occasions through this trend, three of the technical indicators discussed below are at similar or lower levels, than they are now. These instances have resulted in nice short-term gains for the stock. I have laid out the reasons and levels to which the stock may gain while it most likely continues its long-term trend.
When we look at technical indicators, the relative strength index (RSI) is at 19.7756. RSI tends to determine trends, overbought and oversold levels as well as likelihood of price swings. I personally use anything above 75 as overbought and anything under 25 as oversold. Currently the RSI oversold.
The positive vortex indicator (VI) is at 0.7989 and the negative is at 1.2480. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. The negative value is high, meaning the stock has been moving down, and is continuing to do so. The momentum has begun to slow and the positive value is beginning to move upward. The stock should begin rising soon.
The stochastic oscillator K value is 6.2597 and D value is 5.3371. This is a cyclical oscillator that is highly accurate and can be used to identify overbought/oversold levels as well as pending reversals and short-term activity. I personally use anything above 80 as overbought and below 20 as oversold. When the K value is higher than the D value, the stock is trending up. When the D value is higher that the K value the stock is trending down. The stochastic is very oversold. I cannot sit at this level much longer. Once the D value crosses above the K, the stock should begin to rise.
SPECIFIC ANALYSIS
I have created an algorithm (called the SAG gauge) which signals when stocks are truly overbought and oversold. The algorithm indicates when a particular stock meets multiple criteria which culminates in an oversold or overbought alert. That signal will occur within the next few days. The one more day of gains should create the signal. Because this signal will go off after continued gains, now is the best time to enter a position and take greater advantage of the pending upward movement.
Upon back-testing this indicator, it has signaled oversold status 72 times in the history of the stock. Eighty percent of the time the stock gains at least 2.50% over the following 30 trading days after the indicator date. Seventy percent of the time, the stock gains 5% and fifty percent of the time gains 11%.
In the history of this stock, it always gains a minimum of 3.64% when the negative VI is at or above its current level at the same time the RSI is oversold at or below its current level. This additional study requires the stochastic to be oversold as it is today too. Thirteen similar occurrences were studied. The median gain for the stock is 10.57% and the gain takes a median of eight trading days to occur. Seven of these instances occurred at the same time the SAG gauge determined the stock to be oversold. The minimum gain for these instances is 9.38% and the median gain is 19.70%. All of these statistical gains happen fast so anticipating the stock to go up and up is not recommended. The maximum movement for this stock could occur within the next 15-25 days.
Considering the RSI, VI and stochastic levels, the overall direction favors a move to the upside. Based on historical movement compared to current levels and the SAG gauge, the stock could gain at least 5% over the next 35 trading days if not sooner.
is 200 the one size fits all for FL?after a heavy fall, FL looks to be bouncing off the 200EMA which has been working well in the past, except during that flip zone from resistance to support, as shown in the yellow circle.
Short FL (Foot Locker Inc.)Short entry: 72.59
SL: 77.74
TP1: 9.20
TP2: 6418
Break Even @TP1 and close half of the position
FL: Go longGo long to next fib line or at a price of 89. Put stop loss around 70.75 in case of retracement. Circa 1 year.
FL - Rising wedge breakdown short from $70.13 to $66FL seems forming a rising wedge formation. Breaking below $70.13 would be wedge break-down confirmation, and if it breaks it can decline to $66.
* Trade Criteria *
Date first found- February 21, 2017
Pattern/Why- Rising wedge
Entry Target Criteria- Break of $70.13
Exit Target Criteria- $66
Stop Loss Criteria- N/A
Please check back for Trade updates. (Note: Trade update is little delayed here.)
DowntrendThe downtrend has been corrected till the weekly resistance line from where it may continue.
Footlocker: A long supported with improving fundamentals Footlocker (FL) recaptured a key level last week. Last quarter, FL reported its highest level of sales ever, with both FCF 9% greater and D/E 6% lower than at last September's peak. However, I think I will wait to see a retrace or mode build at this level to offer a greater R trade, as the initial stop given the current PA is over 2 ATR's.
