Dow component Nike, Inc. has turned the corner after testing deep corrective lows for more than a year and could now break out above the 2015 high, entering a healthy trend advance. In turn, the stock could become a top 2018 performer, leading the upside as it did in the first half of the decade. Fortunately for bulls, current technicals indicate that there is plenty of time to get on board before the rally train leaves the station.
The stock posted solid gains last week after Foot Locker, Inc. (FL) surpassed Wall Street expectations, beating third quarter EPS and revenue estimates. Shoe Carnival, Inc. added to the bullish fervor, also beating estimates while raising fiscal year 2018 guidance. Those stocks booked double-digit percentage gains following the news, underpinning Nike’s surge to a three-month high.
The rally has reached base resistance going back to April 2016, with a breakout into the lower $60s set to issue an intermediate buying signal ahead of a critical test at the 2015 high in the upper $60s. The late-year calendar is unlikely to complete this bullish scenario, but January buying pressure could do the trick, with market players taking profits on 2017 winners and hunting for new long-term opportunities. (See also: Why Netflix, Nike and Starbucks Are Breaking Out.)
Nike has rallied back to 19-month base resistance near $60 and could break out, entering a test at the 2015 all-time high. …read more
Read more here: Nike Stock Could Enter New Bull Market
Category: NKE, FL, SCVL