NKE breaks below Thursday's low
Nike Inc. (NKE) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, NKE ended the week -2.39% lower at 102.03 after losing $0.99 (-0.96%) today on low volume, slightly underperforming the Dow Indu. (-0.58%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 102.62, the stock confirmed its breakout through the prior session low after trading up to $0.95 below it intraday.
Daily Candlestick Chart (NKE as at Jan 24, 2020):
Friday's trading range has been $2.22 (2.14%), that's far above the last trading month's daily average range of $1.25. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NKE.
One bearish candlestick pattern matches today's price action, the Black Candle.
The share closed below the 20-day moving average at 102.30 for the first time since November 13, 2019. When this moving average was crossed below the last time on October 23, 2019, NKE lost -0.89% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 100.76 where further sell stops could get activated. With prices trading close to this year's low at 100.31, downside momentum might accelerate should the market break out to new lows for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Nike. Out of 384 times, NKE closed higher 57.55% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 61.46% with an average market move of 1.11%.