Daily Stock Report

Nike Inc. - (NKE) - November 5, 2021 

Athletic clothing producers have been attracting new interest this week, including Nike (NKE) which returned to the Green Favored Zone in the SIA S&P 100 Index Report yesterday for the first time since late September. Yesterday the shares finished in 25th place, up 2 positions on the day and up 5 spots in the last month. 

Since bottoming out with the market in March of 2020, Nike (NKE) shares have been steadily advancing in a step pattern of rallies followed by periods of consolidation at higher levels. After spending most of the first half of this year in a consolidation phase, the shares broke out over $145.00 in June. Following a summer advance, the shares declined into the fall but that was contained above both the previous breakout point and a rising support line, which identified it as a correction within a larger uptrend. 

In recent weeks, the shares have started to climb again, regaining their 50-day average near $160.00 (which reverses polarity to become initial support) and breaking out to a new all-time high above $175.00 yesterday. Next potential upside resistance on trend appears in the $200.00 to $205.00 area where a round number and a measured move converge.   

After consolidating through the first half of this year, Nike (NKE) broke out back in the summer and then slumped back a bit into the fall. The correction was contained, however, above its previous breakout point near $144.75, a sign that underlying accumulation remained intact. In recent weeks, the shares have been climbing once again and finished above $175.00 yesterday but they need to close above $176.45 to complete a bullish double top pattern and confirm that their primary uptrend has resumed. 

On a breakout, next potential upside resistance could appear near the $200.00 round number, then near $210.85 and the $232.80 to $237.45 zone based on horizontal and vertical counts. Initial support appears near $159.90 based on a 3-box reversal.    

With its bullish SMAX score increasing to 9, NKE is exhibiting strength against the asset classes. 

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