I have read alot of good things about Nike and its been on my watchlist again since the last earnings report. I saw alot of people recommending to buy it around 60$ but in my view it was simply too expensive up there.
Now that we got this gap lower, in reaction to bad foot locker earnings i am using this dip to buy Nike with a tight stop below the last swing low.
I recommend reading this piece, it puts it quite well:
Investorplace Article about Nike
Anyway when technicals and fundamentals come together like this, for me this becomes a conviction buy, but never without a stop.
Now to the technicals:
Main trend is obviously to the upside, and then market entered into this big consolidation period, and now in my view it is more clear to see that we are forming a big bottom pattern, that might resolve to the upside.
There is also a potential S-H-S pattern setting up.
Targets would be around 60$, 65$ and finally 70$ but this is of course more longterm. Shortterm i am seeing 60$ area as strong resistance, that bulls need to take out for a move into 65$.
Imho moves below 51$ would invalidate this trading idea, so as always trade with care and don't fall in love with a position, but stay rational and trade your plan.
Blessings
Now that we got this gap lower, in reaction to bad foot locker earnings i am using this dip to buy Nike with a tight stop below the last swing low.
I recommend reading this piece, it puts it quite well:
Investorplace Article about Nike
Anyway when technicals and fundamentals come together like this, for me this becomes a conviction buy, but never without a stop.
Now to the technicals:
Main trend is obviously to the upside, and then market entered into this big consolidation period, and now in my view it is more clear to see that we are forming a big bottom pattern, that might resolve to the upside.
There is also a potential S-H-S pattern setting up.
Targets would be around 60$, 65$ and finally 70$ but this is of course more longterm. Shortterm i am seeing 60$ area as strong resistance, that bulls need to take out for a move into 65$.
Imho moves below 51$ would invalidate this trading idea, so as always trade with care and don't fall in love with a position, but stay rational and trade your plan.
Blessings
Comment:
Ok i am closing this position at 53$, we have earnings coming up today, i dont want to be in this volatile environment. Did not work out as expected.
Taking a small loss of overall -1.5%.
Goodbye nike
Taking a small loss of overall -1.5%.
Goodbye nike
Trade closed manually
Target for now 60$ and eventually 65$ if things are rosy.
I will enter the second half, if the bears manage to make a move into 53.30$ same stops and targets as above.