DKS faces near-term selling pressure but may bounce and recover to the parallel channel bottom once the Foot Locker issue is resolved.

And my gosh, guys, look at this move after earnings. A nasty 30% decline. I'll be I'll admit I was in a victim on on the day trading room today, lost about 2% because this stock just didn't want to bounce.

Now, what I found too on this stock, look at the weekly time frame. If we we wind the time back to August of 2023, 3 years ago, we almost had an identical move after earnings. 29% drop here.

Look at what happened the following weekly trading candles. After the weekly close after earnings, we actually ended up dropping another 10%. Now, we did have about a week recovery effort, but then we dropped 10% and then ripped higher on the charts pushing up over 150% on the charts.

Now, when we have a big sell on a chart like this, this is the 50% retrace from the COVID lows, guys. Now, generally this area coming down with the sharp nature is going to generate a very very quick sharp bounce back up.

But this today is acting like a spider web or trampoline absorbing the sell right through this level of support. Very well could see a bounce in the coming days, come back up and test this level at 13403.

And then from that point, we may have further selling to go, much like what happened back in October of 2023. If that happens, the next key level of support's down here at 10557.

And that is also a fib retrace. That happens to be the 618 fib retrace, but once all of the selling pressure is over, I'm not saying Dicks is going to go up 152%. However, look at the destination.

If you just draw a simple parallel channel on your chart connected over with pivot high to pivot high, and then I connect over with this pivot low. Once we get traction with Dicks, because what was pulling this down was really the efforts for Foot Locker.

Now, DKS acquired Foot Locker recently, and what was expected to be an ex accelerant helping it push up the charts and and gaining more market share in the footwear department, it didn't do that.

It's weighing down. It's becoming a lead weight around its neck and they're costing them more money, pushing them into the red. So, if they don't rectify this Foot Locker problem soon, we certainly could be testing the 105.57, but once that is rectified, I anticipate price to come back up and attack this bottom portion of the parallel channel.

Because what happens when price breaks major trend lines? It likes to find support and then head right back up and hit the bottom of that declining parallel channel. We've seen it happen on STX.

We've seen it happen on now US oil. We've seen it happen on Guys, I can't even name all the charts. It's just so many to name, but a big fall like that, guys, we're too Look at the RSI weekly 24.67.

Last time it was that low, the COVID lows. Then flip on the volume, too, guys. This volume sticking out like a sore thumb, getting almost as high volume as this major pivot low that was placed here in 2022.

So, guys, it's all of the signs are there pointing. Yes, they are dumping this stock, but there's also a lot of people jumping in.

The 10-minute chart did not show that. Look at this decline that occurred on this stock today. It's just really fascinating to see no solid sustainable bounces the entire day, just down, down, and down some more.

Tells me they actually likely still will have selling pressure in the coming days. This isn't immediate buy. This is not an immediate buy. You likely are going to have margin call issues pushing the pressure on the price lower, which could present an awesome opportunity for a stock on a discount.

Daily RSI 15.38. Ouch, guys. That is some serious decline.