Big Nike NKE Struggles at the Downtrend Lows
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!
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”
One Comment
Comments are closed.