NKE runs into sellers again around 103.89
Nike Inc. (NKE) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NKE finished the week 4.12% higher at 103.54 after gaining $0.17 (0.16%) today on low volume, slightly outperforming the Dow Indu. (-0.09%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 103.54 marks the highest recorded closing price since January 22nd. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NKE as at Feb 14, 2020):
Friday's trading range has been $1.45 (1.41%), that's below the last trading month's daily average range of $1.81. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NKE.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Prices are trading close to the key technical support level at 102.41 (S1). After having been unable to move above 103.74 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 103.89. The last time this happened on Tuesday, NKE actually gained 2.98% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 105.62, upside momentum might speed up should the share be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Nike. Out of 560 times, NKE closed higher 54.64% 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 60.54% with an average market move of 0.63%.