This is a 5y NKE chart, which shows a declining trend. The price has been seen trying to break through the resistance 3 times - 21/12/2015, 21/03/2016 & 22/08/2016 - with no success. Looking carefully at the price & of those 3:
- Closing price: $63.18; volume: 97.4 mil indicates that the market is agreeing to the closing price when 14/12/2015 shows narrow difference between opening & closing price by $0.94 with weak @ 43.6 mil.
- Closing price: $61.65; volume: 71.0 mil indicates that the will continue to rolling down. The assumption was strengthened when opening price ($61.58) - closing price ($61.59) = $0.01 & vol @ 39.4 mil on 28/03/2016.
- Closing price: $59.00; volume: 46.6 mil. Mr.market is hesitating to agree to that price when there is only a slight difference between opening price ($58.82) - closing price ($59.00) = $0.18 while isn't that great.
I had placed those respective lines.
The had breakthrough the support line and I rolled in with the .
My plan :
Short @ $56.25
Profit taking @ $55.13
Stop-loss @ $55.69
No. Shares @ 2 (pardon me, I'm just a beginner trader)