NKE closes higher for the 2nd day in a row
Nike Inc. (NKE) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NKE finished the month -0.54% lower at 98.05 after gaining $2.18 (2.27%) today, notably outperforming the Dow Indu. (0.85%). The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (NKE as at Jun 30, 2020):
Tuesday's trading range has been $2.66 (2.77%), that's slightly below the last trading month's daily average range of $2.91. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower 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 Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on June 23rd, NKE lost -1.81% on the following trading day.
Prices are trading close to the key technical resistance level at 100.69 (R1).
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to June's low at 93.44, downside momentum might accelerate should the market mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Nike. Out of 106 times, NKE closed higher 60.38% 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 60.38% with an average market move of 0.42%.