NKE breaks above 20-day moving average for the first time since February 20th
Nike Inc. (NKE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NKE finished Thursday at 84.30 gaining $5.29 (6.7%), slightly outperforming the Dow Indu. (6.38%). Closing above Wednesday's high at 83.49, Nike confirmed its breakout through the prior session high after trading up to $3.37 above it intraday.
Daily Candlestick Chart (NKE as at Mar 26, 2020):
Thursday's trading range has been $6.85 (8.54%), that's slightly above the last trading month's daily average range of $6.07. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for NKE.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, NKE gained 9.24% on the following trading day.
The share managed to close above the 20-day moving average at 79.64 for the first time since February 20th. Prices are trading close to the key technical resistance level at 88.40 (R1).
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Nike. Out of 243 times, NKE closed higher 49.79% 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 58.02% with an average market move of 0.39%.