Nike - A SneakerHeads TA We're expecting a slight retrace in the whole market as it takes a breather from the crazy run it has had since the pandemic started. RSI levels went through the roof, the market is trying for a V shaped recovery, but we have what is expected to be the worst earnings season ever a few weeks out. Until then we'll most likely be jumping in and out of positions for quick swing trades.
Taking a look at Nike. It has proven time and time again to be wary of shorting stocks with cult like followings (Apple, TSLA, Amzn, NFLX). Even when the numbers disappoint, consumers continue to use these stocks and praise the product defying financial statistics. Nike is no different and the SneakerHead following proves this. Even if we see a drop coming we would expect the cult to buy the shares back up.
TA:
With the above being said, looking at the TA, for the moment we'll be looking for a quick swing trade entry loading up between $90-$94 region with a tight stop at $88.50, taking profit at the $104 range where we got our most recent resistance. We see Nike has been holding the 55MA, RSI has fallen back into neutral territory, and the DMI and the TTM appear to be gearing up for a squeeze.
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