Market Observations: NKE has decisively broken its previous downtrend, establishing a higher high. This bullish breach was further fueled by a liquidity run targeting sell stops below the recent triple-bottom (equal lows). The strong momentum accompanying this breakout signals a potential buying opportunity.
Trade Strategy: Target a buy entry upon a retracement to the 61.8% Fibonacci level. Be sure to place a stop-loss order below the recent swing low to effectively manage risk. Maintain a favorable risk-reward ratio.
Video Focus: This video explores the technical analysis principles that support this bullish perspective:
- Trend Analysis: Identify breakouts and trend reversals with clarity. - Liquidity Runs: Understand how stops are targeted and the impact on price. - Fibonacci Retracements: Recognize key retracement levels for optimal entries.
Disclaimer: This analysis is provided for educational purposes and should not be interpreted as financial advice. Thoroughly conduct your own research and assess your risk tolerance before making investment decisions.