No doubt that Nike's surprise earning result and its gap up would tickle many Trader's FOMO nerves. Us included.
The question is, is it too late to chase?
In order to answer this question, we must first answer another question.
Are you looking for a fast short-term Trade?
If your answer is No, then the answer to the first question is also NO; it's not too late to chase.
However, be reminded that this won't be a fast trade. Be prepared to hold if the price were to retrace.
The major support level is at 120, hence your stop loss should be below 120.
Instead of entering all your position in one trade, split them into two. Chase the current price with half of your positions. For the remaining half, average down at 135.
By doing this, you are still profitable should the price continue to go up. If it retraces, you will still be able to take advantage of the lower prices.
Do ensure that your overall risk is still calculated on both position hitting your Stop loss.
The question is, is it too late to chase?
In order to answer this question, we must first answer another question.
Are you looking for a fast short-term Trade?
If your answer is No, then the answer to the first question is also NO; it's not too late to chase.
However, be reminded that this won't be a fast trade. Be prepared to hold if the price were to retrace.
The major support level is at 120, hence your stop loss should be below 120.
Instead of entering all your position in one trade, split them into two. Chase the current price with half of your positions. For the remaining half, average down at 135.
By doing this, you are still profitable should the price continue to go up. If it retraces, you will still be able to take advantage of the lower prices.
Do ensure that your overall risk is still calculated on both position hitting your Stop loss.