NKE closes above its opening price after recovering from early selling pressure
Nike Inc. (NKE) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
NKE finished the month -0.45% lower at 97.61 after gaining $0.79 (0.82%) today, slightly outperforming the Dow Indu. (0.44%). Trading up to $0.59 lower after the open, Nike managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 97.23, the share confirmed its breakout through the prior session high after trading up to $0.42 above it intraday.
Daily Candlestick Chart (NKE as at Jul 31, 2020):
Friday's trading range has been $1.35 (1.39%), that's below the last trading month's daily average range of $1.76. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NKE. Prices continued to consolidate within a tight trading range between 95.80 and 98.40 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on July 22nd, NKE actually lost -0.62% on the following trading day.
The stock managed to close back above the 20-day moving average at 97.53 for the first time since July 24th.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 95.80 where further sell stops might get activated. As prices are trading close to July's low at 95.11, downside momentum could accelerate should the market mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Nike. Out of 723 times, NKE closed higher 52.56% 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 62.38% with an average market move of 0.99%.