Trade Idea – Foot Locker

The negative environment related to traditional US department store titans has already been mentioned in the previous post. In case of Foot Locker the shares are under heavy pressure on the news Nike – its most important partner – might team up with Amazon. Needless to say, this would be very disruptive for FL which operates more than 3000 footwear stores globally.

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Historical share price performance of Foot Locker (USD), source: Yahoo Finance

Based on this significant share price decrease, this company seems to have the lowest RSI level currently with relatively high number of buy recommendations. In my opinion it is worth to try it on for some days at least 🙂

On 21 June 2017 long position has been opened at USD 45.4 and on the same trading day I closed it at USD 46.98. The realized 1-day return before any taxes and fees is 3.48%.