Check out the pullback in Nike (NKE)! The DJIA member broke out to new highs in September on a strong earnings report. It ran to the high 90s and then stalled and retraced almost the entire move. NKE shares are now back to their $90 breakout zone, which was also resistance in April and July.
On top of that NKE is holding its 50-day moving average and has had several interesting candlesticks recently: -Oct. 30: Inside day -Oct. 31: Outside day -Nov. 5: Inside day -Nov. 6: Outside day
Those are all potential reversal patterns. When you consider that the short-term trend was bearish after a slide in late October, that would suggest stabilization. Not hugely compelling in isolation, but throw in the $90 support line and 50-day moving average and you have some serious confluence on the chart.
The macro backdrop is also interesting, with the positive Chinese news today. (Remember China is a key growth market for NKE.) Retail sales are next week and company earnings are shortly before Christmas.
Black Friday is still three weeks away. Will the holiday shopping start early in NKE?
Thank you.