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

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.