As the NBA and other sports seasons come up this fall, you may be wondering if this is the perfect opportunity to buy Foot Locker (FL) shares, especially as their earnings will be released. shortly (November 19, 2006). While this may be considered a good deduction, there are other deeper reasons and answers to this question that, unfortunately, can delay or even cancel your decision to pursue your purchase intentions. Although all the economic and fundamental analyzes indicate an excellent performance for this company, the technical analysis of these indicators weighs much more heavily in a title like Foot Locker.
To summarize these sentiments in more rudimentary terms, Foot Locker, since its IPO in the early 1970s, has proven to the public that fairness is hard to gauge. It's true until 1990, Foot Locker has recorded quite strong gains, but after the start of the decade, it seems that Foot Locker has a lot of trouble to surpass its resistance level identified at about $ 30 in terms of price. of the action. The good news, however, is that Foot Locker has also very rarely fallen below the currently identified support level, which is about $ 20. While this level may be a positive indicator for a large cap stock for a year or two, in the case of nearly 16 years old, it's time to realize that Foot Locker has reached its peak and will continue to struggle to exceed 30 years old. dollars soon. In fact, in recent years, Foot Locker has had a huge opportunity to face this awful 10-point position. Foot Locker, as described by Yahoo Finance, sells goods in the form of clothing and sports shoes, which are luxury goods and should prosper during the previous economic period, the price of the action, provided that Fundamentals are well understood, should have reached new records, but instead, the price of an action has actually dropped or nearly reached the breakeven point during this period. This is what led me to conclude that, especially since the slowdown of the US economy during recessions, the purchase of shares would be a loss of capital and of time to invest in a company like Foot Locker.
However, if for some reason you have a desire or a desire to buy shares of this company, but only in the short term, there may be good news. Since Foot Locker recently released strong fundamentals in terms of revenue growth and operating income, which are supported by a high P / E ratio, it may be worthwhile to make money in the next two months . As Foot Locker should generally behave well when consumers are both confident and employed, the fundamentals of this consumer – centric business, especially at this time of year, should be at the highest. If this is the case, it is then possible, in the coming months, to win 10 to 20% if all goes well, Foot Locker approaching the level of support of his position rather than resistance. However, if you plan to hold your stock longer than this (around April 2007), be aware that most of your capital gains you would have accumulated during this period are likely to decrease or even become negative. territory.
Thus, although it is unlikely that investments in Foot Locker will be made in the next few months, I would prefer, if you were yourself, to invest my money in actions more proven by the results or be sure to withdraw my money. shares once I had done about 10-20%. As a long term investor, I would definitely stay out of this title because over 16 years old, it is absolutely too long for stocks to stay in one position.