NKE closes lower for the 2nd day in a row
Nike Inc. (NKE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NKE finished Wednesday at 118.59 losing $0.68 (-0.57%), underperforming the Dow Indu. (0.13%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (NKE as at Sep 16, 2020):
Wednesday's trading range has been $1.53 (1.29%), that's below the last trading month's daily average range of $2.42. 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 slightly lower than usual for NKE.
One bearish candlestick pattern matches today's price action, the Shooting Star. The last time a Shooting Star showed up on August 3rd, NKE lost -1.02% on the following trading day.
Prices are trading close to the key technical support level at 117.41 (S1). Prices are trading close to the key technical resistance level at 120.48 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 120.48 where further buy stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Nike. Out of 304 times, NKE closed higher 54.28% 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 62.83% with an average market move of 1.19%.