NKE Long-term outlook

NKE in January moving with tight movement between $51.63 – $54.12. The tight movement mostly happens because of the shift in major policies by President Trump. U.S withdrawal from TPP does not impact the company in big scale, but the company missed chance for lower import cost from Vietnam. If TPP signed, 43% of Nike footwear produced in Vietnam

If TPP signed, 43% of Nike footwear produced in Vietnam and apparel from Malaysia would enter U.S with less or without custom import duties. Although positive, if TPP signed, it will be hard for NKE to maintain its core business market in U.S with the splurge of import products enter the country.

On another note, the company faces implementation of board tax which will skyrocket the customs fees. Up to date, the policies enacted by President Trump is negative for the company in the long-term.

Click here to see NKE January analysis

New Month

Monthly chart

Despite the threat from fundamental side, NKE in monthly chart moving out of its bearish channel upside. The breakout was seen as positive but not confirmed yet as the February month has not closed. If the price maintained its upward movement and closed above the channel, traders could see higher price in coming months.

Weekly chart

The breakout above white bearish channel opens the upward scenario toward blue trendline shown in the weekly chart. There might be a test of broken channel first before the price could advance upside but not mandatory.

Daily chart

NKE in daily chart move past the red channel and also the white channel. There are three scenarios which might happen:

The price continues its upward movement, gaining momentum after the break of resistance toward the blue trendline.
Shares prices stalled and corrected, it find support at the red channel and bounce upward
The best scenario out of all, the price fall and re-test the broken white channel. After a successful test of the channel, the price bounces and continue its uptrend.