NKE Head and Shoulders Forming
As we all know NKE was forced to shut down their manufacturing facilities in Viet Nam due to the pandemic, and this represents 51% of their manufacturing capabilities in Asia. As we also know, NKE's largest customer in Asia is China, where they generate approximately 5+ Billion in revenue. It has been reported that NKE was put in the corner due to political statements made regarding China. In addition to this, it appears NKE has some type of relationship with Evergrande (through a Chinese soccer team?), where it is yet to be determined if the recent turmoil surrounding the Real Estate Empire will have an impact on the Shoe Manufacturing Empire. What does all this mean? Well, NKE appears to be forming a Head and Shoulders pattern on the Daily/1Hr where the peak of the right shoulder seems to be lining up with their earnings date. Any possible negative impact from the aforementioned factors may be amplified by a lackluster earnings report due to the supply chain issues, and could serve to complete that right shoulder. This would set us up for a potential break to the downside, and put price in the gap created during their previous earnings report.
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