Foot Locker could reach its USD 63.6 resistance.

From a fundamental viewpoint, the company is strong. The Thomson Reuters consensus revised regularly upward sales and earnings estimates for the current and the next years. The financial situation is good and the EPS should rise from USD 2.85 last year to USD 3.45 this year. Surperformance ratings highlight attractive valuation levels, with a P/E ratio at 16.6x and an enterprise value at 7.92 times the EBITDA, both for the current year.

Technically, the security is in an uptrend on all time scales and it is supported by moving averages. Prices recently gave a bullish signal when they crossed the ascending trendline. This new dynamic should allow the stock to reach its USD 63.6 resistance, which will be the first target price.

Thanks to these good indicators, it seems relevant to take a long position in Foot Locker at the current price. The target price is the USD 63.6 midterm resistance. A stop loss will be set around the bullish trendline, because a breakdown of this level would damage technical pattern.