NKE trade ideas
NKE looking good againNKE got beat by the .618 fib but has now found support on convergence of MA's
Target $96 is today closes strong
$NKE Amazon drops and Nike rises. Entry level $94.75 = Target price $102 = Stop loss $94.75
Looks like investors like the move by NIKE to break up the retail partnership with AMZN, they will continue the cloud partnership. NIKE direct to customer will improve margins considerably.
P/E ratio 35 (high)
Company Profile
NIKE, Inc. engages in the design, development, marketing, and sale of athletic footwear, apparel, accessories, equipment, and services. It operates through the following segments: North America; Europe, Middle East & Africa; Greater China; Asia Pacific & Latin America; Global Brand Divisions; Converse; and Corporate. The North America; Europe, Middle East & Africa; Greater China; and Asia Pacific & Latin America segments refers to the design, development, marketing, and selling of athletic footwear, apparel, and equipment. The Global Brand Divisions represents NIKE Brand licensing businesses. The Converse segment designs, markets, licenses, and sells casual sneakers, apparel, and accessories. The Corporate segment consists of unallocated general and administrative expenses. The company was founded by William Jay Bowerman and Philip H. Knight in 1964 and is headquartered in Beaverton, OR.
NYSE: NIKE Weekly Trade idea- Trend is up
- Price came back to test the breakout area and consolidation zone
- SL below the
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Disclaimer: All ideas are my opinion and should not be taken as financial advice.
NIKE Idea NIKE is approaching to the resistance level or we could see it as a pullback. Let's see what will happen when it reaches there.
Buy Nike in pullbackAfter testing the last resistence ( now support ) in 90 USD, NIKE is getting bullish again towards all time highs in 96,30. Nearly 6% upside as shown in hourly chart.
Nike showing weakness - SHORTNike's separation from Amazon might be the catalyst needed to follow through on its weakness.
NKE Waiting to go swing long if reaction to ISM is positveDouble bottom in green zone. Stop below swing low.
LONG NKEStrong support at $90 region, confluence of fibo support from previous swing lows (.312 & .618).
Entry $0.05 above consolidation, SL $0.05 below consolidation, TP using fibo extension .618 with 2.2 RR.
NKE Retest/RemountNKE has pulled back to its previous breakout level of $90. It has retested this level, remounted and held over it with moving averages to support another move upward to retest highs at the $95-97 level. This has a potential 5-7% move.
Moving averages, levels, reversal candles: Nike has them allCheck out the pullback in Nike (NKE)! The DJIA member broke out to new highs in September on a strong earnings report. It ran to the high 90s and then stalled and retraced almost the entire move. NKE shares are now back to their $90 breakout zone, which was also resistance in April and July.
On top of that NKE is holding its 50-day moving average and has had several interesting candlesticks recently:
-Oct. 30: Inside day
-Oct. 31: Outside day
-Nov. 5: Inside day
-Nov. 6: Outside day
Those are all potential reversal patterns. When you consider that the short-term trend was bearish after a slide in late October, that would suggest stabilization. Not hugely compelling in isolation, but throw in the $90 support line and 50-day moving average and you have some serious confluence on the chart.
The macro backdrop is also interesting, with the positive Chinese news today. (Remember China is a key growth market for NKE.) Retail sales are next week and company earnings are shortly before Christmas.
Black Friday is still three weeks away. Will the holiday shopping start early in NKE?
NKE
Update on NKE- NKE has shown clear support on the ER gap around $90
- I think it'll continue to consolidate for a few days before any noticeable gains are made
- Short MACD on the daily chart is coming off the back end, good entry point here
- If NKE breaks $91 I think we'll see a run to $93 or $94
NKE is a short term buy- Supported well at $89 - $90
- Broke resistance after earnings beat
- Coming off the back end of short MACD (2hr)
- Daily trend at +66%
- Ideally a short term buy, likely retrace back to $90
Nike Is Using Round Numbers As SupportFollowing the 2+ years of consolidation from December 2015 to May 2018,
it was likely that price was going to trend to the upside after breaking out.
Usually, when price consolidates for lengthy periods of time, it tends to form
a big trend in the direction of the breakout. As the breakout occurred above resistance,
we may see a trend continue for weeks if not months.
A consolidation lasting for a number of years normally develops into a strong linear trend
but in the case for Nike, we have seen more of a choppy trend with deep pullbacks.
What is apparent about these pullbacks is that they have been finding support at round numbers.
The first pullback after the consolidation period began when price started to decline in
September 2018 and price found support in December 2018 at the $70 round number.
Then price headed back up and soon pulled back to use the $80 round number as support in August 2019.
After price briefly held at $80, it found momentum and shot up through the $90 round number with ease,
only to pull back and use $90 as support where it currently lies.
If price follows the current pattern, it shouldn’t be too long before we see another move to the upside.
What we will have to wait and see is if price can break through the $100 major round number and
also pull back to use it as support.
One thing to note is that the behaviour of a stock or any instrument can change over time.
Price may decide to move away from the pullback pattern and form a strong linear trend when it
passes $100 in which case we will witness a fast-moving trend.
As for now, we will have to wait and see what price decides to do next.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
Elliott Wave View: Nike Looking for Further CorrectionShort Term Elliott Wave view on Nike suggests the rally to $97.05 on October 23, 2019 high ended wave 1. This rally started from August 6, 2019 low (77.5) as a 5 waves impulse Elliott Wave structure. On the chart below, we can see wave ((iii)) of this impulsive rally ended at 94.75. Wave ((iv)) pullback ended at 90.35 as a zigzag Elliott Wave structure. The stock then rallied to 97.05 to end wave ((v)) of 1. From there, it’s pulling back in wave 2 to correct the rally from August 6, 2019 low.
The structure of wave 2 pullback is unfolding as a zigzag Elliott Wave structure where we are now ending wave ((a)) of this zigzag. Internal of wave ((a)) is unfolding as a 5 waves impulse. Down from 97.05, wave (i) ended at 95.58, and wave (ii) rally ended at 96.10. The stock then extended lower in wave (iii) towards 89.13 with internal subdivision as 5 waves in lesser degree. From there, wave (iv) bounce ended at 90.60. Wave (v) lower is currently in progress and expected to end soon. The 5 waves move lower will end wave ((a)) of 2. The stock should then bounce in wave ((b)) of 2 to correct cycle from October 23, 2019 high before the decline resumes in wave ((c)). As far as pivot at 97.05 high stays intact, we expect rally to fail in 3, 7, or 11 swing and stock to resume lower again.
NKE Looks Strong at Key SupportNKE
Shares of NKE pulled back following change of CEO and harsh comments by VP Pence on businesses that seem to be with China and against Hong Kong and the US. Political and Executive catalysts rarely dethrone a strong earnings-driven trend.
