Big Nike NKE Struggles at the Downtrend Lows

Dec 20, 2016: 11:30 AM CST

Dow Jones component Nike (NKE) has not had a very good 2016.

Price peaked above $66.00 per share at the end of 2015 and share prices currently trade at the $50.00 level.

Let’s highlight the downtrend in motion and set up the next swing trade for this stock, one of the weakest in the Dow Jones.

Big name brands Nike (NKE) and Coca-Cola (KO) are the weakest stocks in the Dow Jones right now.

Again, Nike peaked and entered a distribution downtrend through all of 2016.

We see two big retracements and “bear flag” opportunities as drawn and it’s possible we’re seeing a third sell-swing outcome emerge.

If so, we’d want to short shares beneath the $50.00 per share level toward the $46.00 confluence target low.

That’s our “Bearish Downtrend Continuity” Pathway, but as traders we must be prepared to trade an alternate outcome.

In this case, Nike shares open a reversal bullish pathway above the $52.00 level which is the falling 20 week EMA.

IF we see a sudden breakout higher, we’d then target the upper trendline and 50 week EMA confluence at $55.00 per share.

Either way, shares are at a critical junction and that means a trade can develop!

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Corey Rosenbloom, CMT

Afraid to Trade.com

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One Response to “Big Nike NKE Struggles at the Downtrend Lows”

  1. Nike Has Not Had a Good 2016 - TradingGods.net Says:

    […] By Corey Rosenbloom […]