Nike For Nike Lovers !Hi friends and Trading community, So here i am sharing mine trading idea on Nike so before i will share my technical analysis on it want to share some learning things by the provided chart which also based on technicals and mainly focussed on Double top pattern sharing below. And by chance it's a trading idea so i can't use an educational flag for it but somehow it will help to identify about the mentioned pattern above.
So as you can see i used some green and red arrow marks on chart so i want to tell that green arrows are for support and the red one's are for resistance, So now i will start form Double top as you can see that after hitting all time highs of 179 levels price took a pullback near to 148 and again retraced near to all time high and made a double top pattern there so that 148 levels earlier was a resistance and after become support (neckline) for price after making top one and helped for a retracement towards all time high or we can say for double top too. So now i want to share about the importance of double top neckline that we can see on this chart that after breaking neckline (148 levels) price reached to 83 levels which was a cut of 43% from neckline, So here my point is this that if price breaks double top neckline and sustain below with bearish strength it will be a short opportunity for trading community with proper risk management.
And now i will share my Trading idea again with the same double top pattern so as we can see that price made a double top recently in month of March 2023 and as same i described about neckline above formed again at the levels of 116 and as usual after breaking that neckline price went to 89 levels so we can say that the proababilities are high for a short trade if price break neckline support, But now i find a breakout on this provided chart that price close above neckline support which actually turned in to resistance later. In this 116 was a strong resistance later become support by this we can understand that how support and resistance exchange their roles for this i am sharing an educational idea link below you can check that too.
What are the probabilities mates-:
Probability One-:
That price will continue marching towards mentioned flip zone (127 to 131 levels) and will come down after for breakout retest.
Probability Two-:
That price will not go up from here and retest it's breakout straight from here.
Probability Three-:
In rare cases that price will break all mentioned resistance and will complete all mentioned targets in idea, But according to my experience the chances are very less for this thing.
Targets mentioned on chart rest i will update this accordingly on the basis of price action whether on daily or weekly chart.
It's a bit long description Guys but i want to make sure that the insight i am providing is genuine or not so i had to write more for this explaination, Hope you like my publication friends.
This publication is meant for only learning purpose, it is not any kind of trading advice.
Best Regards- Amit
“Do not anticipate and move without market confirmation, being a little late in your trade is your insurance that you are right or wrong.” - Jesse Livermore
How support and resistance exchange their roles
