Daily Stock Report

Nike Inc. - (NKE) - June 29, 2022

Since dropping into the Red Unfavored Zone of the SIA S&P 500 Index Report back in January, athletic clothing and footwear maker Nike (NKE) has plunged 31.6%. This includes a 7.0% loss yesterday that sent NKE down another 11 positions to 443rd place. 

 For the first half of this year, Nike (NKE) shares have been consistently under distribution, steadily sliding in an Falling Channel of lower highs and lower lows with bounces being contained near the 50-day moving average, which suggests current resistance near $116.00. 

The shares have dropped to test $100.00, a big round number and a previous breakout point. If support were to come in here, it could be a sign of a bottom starting to form, but if support fails, the shares could have significant additional downside. Based on previous highs and lows, next potential support on a breakdown could appear near $92.50 then $82.50. 

Since peaking back in December, Nike (NKE) shares have been under distribution, first selling off in the winter, staging a short symmetrical triangle pause, then breaking down in May. This month the shares have continued to steadily decline in a downward trend of lower highs and lower lows, recently completing two more Double Bottom breakdowns. 

The shares have now reached a potentially key technical test. Between a previous breakout point and a big round number, the $100.00 to $100.90 zone has emerged as an area where the decline could potentially be contained. Should that occur, initial bounce resistance may appear near $111.40 based on a 3-box reversal. 

On the other hand, if support fails here and the shares close below $100.00, it would confirm that distribution continues with next potential downside support near $93.20, $86.10 or $82.75 on trend based on horizontal and vertical counts. 

With a bearish SMAX score of 1, NKE is exhibiting weakness against the asset classes. 

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.