Bearish on NKE; Double Bottom Likely

BATS:NKE   Nike, Inc
Using elliot wave analysis as my primary indicator and other technicals as supporting indicators, I am bearish on Nike . I believe the recent rise seen in Nike from the 84.76 level has been corrective fourth wave action. The MACD , RSI and Stoch indicators are embedded indications that Nike's fall from the low 100's to mid 80's was a third wave. I would also point out the spike in volume that you would typically see in third waves. The rise from the bottom of wave three has been choppy and overlapping, not impulsive. This leads me to believe Nike will take a hit from this level. Downsides target range from 85-82.9. It is possible based on fib relations to see a double bottom around 85. If 85 were to crack then 82.9 would be my next target.
NKE releases earnings Tuesday, and based upon the current action there is a potentially very bearish set up for Tuesday. If on Monday NKE were to rise, but stay below 100, there would be a 1-2 i-ii set up to the downside just in time for earnings release. Now even if NKE were to release a good quarter, and it received positive reception, I would remain bearish just as long the price remained below $103.


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