Footwear retailer Foot Locker, Inc. (FL) continues to trade in a choppy pattern in 2018. The daily chart shows the stock above a "golden cross" since Feb. 6. A negative reaction to earnings reported on March 2 resulted in the stock trading as low as $38.17 on March 2, but a positive reaction to earnings on May 25 produced the momentum to set the 2018 high of $59.40 on June 11.

Shares of Foot Locker closed Monday, Nov. 19, at $48.81, up 4.1% year to date and in correction territory at 17.8% below the 2018 high of $59.40 set on June 11. The stock remains in bull market territory at 27.9% above its 2018 low of $38.17 set on March 2.

Analysts expect Foot Locker to report earnings per share of 92 cents after the closing bell on Tuesday, Nov. 20. The sports footwear and apparel retailer is an excellent benchmark for mall traffic, as buyers of expensive athletic shoes want to try them on first. Foot Locker features new items from Nike, Inc. (NKE), which have wider gross margins. The store will also be featuring collectable figurines of LA Lakers star LeBron James.

The daily chart for Foot Locker

Daily technical chart showing the performance of Foot Locker, Inc. (FL) stock
Courtesy of MetaStock Xenith

Foot Locker has been above a "golden cross" since Feb. 6, when the stock closed at $47.64. A "golden cross" occurs when the 50-day simple moving average rises above the 200-day simple moving average, indicating that higher prices lie ahead. This tracked the stock to its 2018 high of $59.40 set on June 11. Note the price gap higher on May 25 on a positive reaction to earnings and the price gap lower on Aug. 24 in reaction to the company's most recent earnings report.

Today, the stock is above its 200-day simple moving average at $48.36 but below my monthly pivot at $51.56, which was tested between Nov. 12 and Nov. 15. This is the higher of two horizontal levels on the chart. The lower line is my quarterly value level of $38.33.

The weekly chart for Foot Locker

Weekly technical chart showing the performance of Foot Locker, Inc. (FL) stock
Courtesy of MetaStock Xenith

The weekly chart for Foot Locker will be positive if the stock ends the week above its five-week modified moving average of $49.00. This would indicate upside potential to its 200-week simple moving average at $57.95, which is the "reversion to the mean," last tested during the week of June 15. The 12 x 3 x 3 weekly slow stochastic reading is projected to rise to 50.03 this week, up from 43.14 on Nov. 16.

Given these charts and analysis, investors should buy Foot Locker shares on weakness to my quarterly value level of $38.33 and reduce holdings on strength to my monthly risky level of $51.56.

Disclosure: The author has no positions in any stocks mentioned and no plans to initiate any positions within the next 72 hours.