Nike (NKE) short play off resistance
Updated
NKE is showing the following strong short entry signals:
- descending price channel (examine weekly chart to see this easier)
- Currently at top of descending price channel
- Showing strong resistance, a successive lower peak (not quite a true head and shoulders), and divergences.
This is a good short trade that could be played several ways.
- Swing play: Enter immediately. Set stop loss above resistance line ($56.85) and set price target below previous daily triple top at $53. This is approximately a 5-10 day trade estimate.
- Medium term play: Enter immediately or after confirmation. Same stop loss. set price target at actual lower resistance channel, plus some. Depending on variable time value this could be as low as $47-48. Continue extending channel to provide updated price estimate based on the slope over time.
- descending price channel (examine weekly chart to see this easier)
- Currently at top of descending price channel
- Showing strong resistance, a successive lower peak (not quite a true head and shoulders), and divergences.
This is a good short trade that could be played several ways.
- Swing play: Enter immediately. Set stop loss above resistance line ($56.85) and set price target below previous daily triple top at $53. This is approximately a 5-10 day trade estimate.
- Medium term play: Enter immediately or after confirmation. Same stop loss. set price target at actual lower resistance channel, plus some. Depending on variable time value this could be as low as $47-48. Continue extending channel to provide updated price estimate based on the slope over time.
Order cancelled
Never entered this trade due to never actually hitting my entry price.Still bearish on NKE in general over the long term. My strategy for NKE is now to just wait until I see some obvious price channel formation or indication of a high
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