Earnings Play: Nike

Look for consolidation followed by a continuation of the uptrend.

Trader 2

Today, after market, Nike (NKE) is expected to release first quarter EPS of $0.46 compared to $0.86 last year on revenue of approximately $9.1 billion vs. $10.7 billion a year earlier. The company is the largest athletic footwear and apparel brand in the world, and its current analyst consensus rating is 28 buys, 5 holds and 2 sells, according to Bloomberg.

Technically speaking, on a daily chart, Nike's stock price has been in an uptrend since mid-March. Yesterday, on September 21st, price opened below a bullish trendline and the 20-day simple moving average, a short-term bearish signal. However, the candle sticks after the trendline and 20-day SMA break are spinning tops, which are neutral candle sticks and could mean that buyers are still holding up the price. Even though price broke below a short-term bullish trendline and the 20-day SMA, it is holding above its 109.75 support level. Price will probably consolidate and hold above 109.75 before regaining momentum and retesting the all-time high of 120.50. If price can break above 120.50, it will likely continue its uptrend and advance towards its first Fibonacci target of roughly 137.00. On the flip side, if price cannot hold above its 109.75 support level, that would be a bearish move and price could drop to its second support level at 102.00. If price does not rebound off 102.00 and falls further it could be the beginning of a new downtrend.          

Source: GAIN Capital, TradingView

More from Earnings

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account