Foot Locker shares could regain their upward trend after having run out of steam.

The sportswear and footwear retailer displays attractive fundamentals: a low valuation (P/E ratio of 15.1x for 2015) and an increasing profitability (EPS should increase by 21% in 2015). Analysts covering the stock are optimistic and target a 16% potential gain on average.

Technically, the uptrend in the medium and long term should protect the stock of a major downtrend. In the short term, prices went through a consolidation phase close to the USD 54/58 resistance area, which led the stock on the USD 51.75 mid-term support. This threshold tested several times is likely to allow a technical rebound and resurrect the bullish trend.

Active investors should open a long position immediately on the security to benefit from this anticipated rebound. The target price can be set at USD 54.5 and USD 58 by extension. A stop loss will be fixed below the entry point to limit the risk of the strategy.