Nike (NYSE: NKE) Long Term Technical Analysis February 2019

NKE Long-term outlook

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Once a struggling company who suffer a slowdown in sales, losing market shares in the U.S and dull innovation. NKE reemerge with new lines of products which helped the company reach double-digit growth in North America. Despite the slowdown in global growth after the U.S-China trade war, NKE bagged hefty growth in China.

Turn-around strategies done past several years prove to be successful. The company focus on direct-to-customer sales, expand online presence through social media, improving mobile and in-store customer experiences. Currently, analysts project the average earnings growth of 15% moving forward to 2021. Fundamentally, there is no reason to sell NKE.

New Month

Monthly chart

NKE surpassed $70.00  resistance and continue its climb to all-time high $86.04. After that, there was correction which hit the breakout point $70.00. If traders take a look at the chart, $70.00 provide support for several months before NKE could bounce in January.

Currently, NKE is in control by the bull and could make another attempt to print fresh all-time high.

Weekly chart

There is not much to discuss on NKE weekly chart, the situation is bullish and there is no bearish candlestick yet. Without any change in the direction, we should see a fresh high soon.

Daily chart

Opportunities always present for traders who are patients. In the previous analysis, NKE was testing the daily SMA 200 and made a bounce to reach a level around $78.50 before turned lower. The downward movement managed to hit $70.00 where it start rallying after earnings result.

At the current time, it is better to wait for a correction before placing any long positions. On the other side, traders might not have short positions chance as long as NKE stay above $80.00 and daily SMA 200.

Trade plan

Long positions: Wait until pullback happen, $80.00 and daily SMA 200 are the levels to watch.

Short positions: No scenario suggested until the share prices fall below SMA 200.

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