NKE Long-term outlook

NKE launched above $60.00 and rallied to $65.00 before turning back. When the breakout happens, traders might feel left out by the market. However, patience proof to be a better decision. 11-days after the breakout, NKE gapped down and made retest on $60.00 before launching up further to reach all-time high $70.25.

This year, the company might experience setback as President Trump ready to impose a tariff on imported goods. Nike provided the U.S with the goods which come from China Yue Yuen Industrial holding. When the tariff plan signed, it should hit company profitability and demand company action.

We will focus the attention toward NKE contingency plan and the company strategy to counter this event.

Click here to see NKE November analysis

New Month

Monthly chart

NKE completed the bullish cycle after the breakout above $60.00 resistance we mentioned in November analysis. The momentum has brought the share prices to new fresh high, but could not close above it. If NKE starts falling from the current level, then we might have a double top pattern on the chart which is not a good sign for the bull.

The double top pattern is not formed yet, and traders could feel safe as long as NKE stay above $60.00 broken resistance.

Weekly chart

The weekly chart of NKE provides us with a better clue. There is bearish engulfing pattern printed after the share prices hit an all-time high. The bearish pattern not confirmed yet, but it seems the price ready to push lower this week. Similar to the monthly chart, $60.00 will play a major role for the bull.

Daily chart

NKE is hovering near trendline support on the daily chart, and there is a chance the share price will bounce from the support. However, a failure of the trendline is allowed as long as NKE stay above $60.00 handle. Traders could place short-term long position at the current level.