The Finish Line, Inc. (NASDAQ: FINL )

The Finish Line, Inc., a national retailer of athletic shoes, apparel, and accessories for men, women, and kids company yesterday reported their preliminary second quarter 2017 financial results.

Finish Line reported preliminary second quarter earnings to be in between $0.08 and $0.10 per share which fell short of analyst expectations of $0.37 per share. Finish Line reported preliminary second quarter net sales of $469.4 million which was down 3% compared to the same period last year.    

The Finish Line, Inc. CEO’s  Comments

“The marketplace for athletic footwear became much more promotional as our second quarter progressed resulting in challenging sales and gross margin trends,” said Sam Sato, Chief Executive Officer of Finish Line. “Despite these headwinds, we remained disciplined in managing our inventories and expect to end the quarter with inventory levels down approximately 7-8% compared with a year ago.”  Business Wire

FINL Technical Analysis

FINL opened trading yesterday at $10.66 which was down from the previous day’s trading close of $10.67. FINL closed trading yesterday at $10.42 and spiked down after market to $8.09, equivalent to a 22% decrease from the closing price. Taking a look at the daily chart we can see the last time FINL traded below these levels we have to go all the way back to month of June 2009 when it traded at $7.42.

Taking a closer look at the daily chart we can see that before the spike down FINL had been in an overall downward trend dating back to December 8th, 2016 when it traded at $24.36. FINL has a float of 35.89 million shares and traded below the normal daily trading volume on Monday.

For day trading purposes, I would like to see FINL open trading on Tuesday below $8.85 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap down.

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