Nike Inc (NYSE: NKE) opened with a positive gap on Monday, above the 81.00 level. The stock managed to close above its previous high of 81.84, after printing a new all-time high at 81.41. The price structure continues to be of higher peaks and higher troughs within the upside channel that’s been containing the price action since September, and thus we believe that the outlook remains positive.
Yesterday’s advance has confirmed a forthcoming higher high on the daily chart and thus, we would expect the price to continue rising and concerning unchartered territories, perhaps at least until it challenges the upper bound of the aforementioned channel.
Our daily oscillators detect upside momentum and corroborate our view that the stock may continue drifting north. The RSI turned up again and now looks to be heading towards 70. The MACD, already positive, has also turned up and appears ready to move above its trigger line soon.
In order to abandon the bullish case, we would like to see a clear close below the lower end of the channel and the 76.00 support territory. Such a dip could confirm a forthcoming lower low on the daily chart and may see scope for downside extensions towards the 71.00 level, defined by the low of the 27th of June, or the psychological round figure of 70.00.
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