Looking at
NKE
and seeing all kinds of bearish signs for the short term. It is currently under its 200MA and 50 MA, also below the 12 and 26 EMA (DAILY CHART)
Bearish case (short term)
This one is simple: A break below $144 could give sellers the chance to fill the gap created back on June 24th 2021
Below $144 I can see $138 being a real possibility if not the full gap to $134.82. Puts below $144 could work and be considered.
Volume is light. Less shares traded on 1/18 than compared to average volume of 5,815,975 shares
NKE has the demand on its product, but supply chain issues make it where they cant meet that demand. Earnings in March will paint a bigger picture as far as revenue and EPS
Bullish outlook (long term)
That said, I am short term bearish but long term bullish: "Guggenheim's Robert Drbul dubbed the athletic-apparel retailer his "best idea" for 2022 in a December 31 note, saying Nike "is rapidly embarking on the next era of its company history," which he expects to be "digitally led." "Drbul maintained a buy rating and a price target of $195 on Nike stock, which was down 1.8% Monday after gaining 18% in 2021." "Insider reported previously that Nike has been pushing into the future internet, called both Web 3.0 and the metaverse. Its push has included video games, the creation of a metaverse studio, and even a promised line of digital sneakers called CryptoKicks." I really like their effort to step into a newer market and expand. Nike is a staple brand that is not going anywhere. At 145 this stock is underweight.
NKE
and seeing all kinds of bearish signs for the short term. It is currently under its 200MA and 50 MA, also below the 12 and 26 EMA (DAILY CHART) Bearish case (short term)
This one is simple: A break below $144 could give sellers the chance to fill the gap created back on June 24th 2021
Below $144 I can see $138 being a real possibility if not the full gap to $134.82. Puts below $144 could work and be considered.
Volume is light. Less shares traded on 1/18 than compared to average volume of 5,815,975 shares
NKE has the demand on its product, but supply chain issues make it where they cant meet that demand. Earnings in March will paint a bigger picture as far as revenue and EPS
Bullish outlook (long term)
That said, I am short term bearish but long term bullish: "Guggenheim's Robert Drbul dubbed the athletic-apparel retailer his "best idea" for 2022 in a December 31 note, saying Nike "is rapidly embarking on the next era of its company history," which he expects to be "digitally led." "Drbul maintained a buy rating and a price target of $195 on Nike stock, which was down 1.8% Monday after gaining 18% in 2021." "Insider reported previously that Nike has been pushing into the future internet, called both Web 3.0 and the metaverse. Its push has included video games, the creation of a metaverse studio, and even a promised line of digital sneakers called CryptoKicks." I really like their effort to step into a newer market and expand. Nike is a staple brand that is not going anywhere. At 145 this stock is underweight.
