Nike Inc (NYSE: NKE) traded higher on Friday, getting closer to its record high of 174.30, hit on August 5th. Overall, after hitting support near the prior downside line taken from the high of December 21st, 2020, the stock has been drifting higher, and this keeps the broader outlook positive.
In our view, investors will soon challenge the all-time high of 174.30, but they may take a short break after that, allowing a small correction. That said, we would see decent chances for the stock to rebound from near the 161.50 line, defined as a support by Wednesday’s low, something that may result in a rise above the aforementioned record. With the stock into uncharted territory, we will mark as our next potential resistance zone the 190.00 psychological round figure.
Our daily oscillators detect strong upside speed and support the notion for further advances in this stock. The RSI is close to 70 and appears ready to cross above that line, while the MACD lies above both its zero and trigger lines, pointing somewhat up.
We will abandon the bullish case only if we see a dip below 138.00, a zone that provided resistance between April 7th and June 1st. Such a move could confirm the stock’s return back below the downside line taken from the high of December 21st, 2020, and may allow declines towards the 126.00 territory, which acted as a floor between March 25th and June 18th. If investors are still not interested at that price level, then we could see the fall extending towards the 119.00 level, marked by the low of October 30th, 2020, or towards the 111.00 zone, which is slightly below the low of September 21st, 2020, and provided support between August 25th and September 8th, 2020.
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