From the high of $28 (U.S.) in 2006 (A), Foot Locker Inc. had a three-part decline to late 2008 (B). After a narrow trading range between $7 and $9 and then between $9.50 and $12.50, Foot Locker rose to $16.76 (1), declined to "retest" the top of the previous range (2) and most recently had a breakout to signal the beginning of a significant up-leg. Only a decline below $15.50-$16 would reverse the current long-term up-side potential.
Point & Figure measurements provide targets of $24 and $27. The large area of accumulation (dashed lines) supports higher targets.
Ron Meisels is a contributor to the www.NA-marketletter.com website. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com