The technical picture of the Nike Inc. stock (NYSE: NKE) on our 4-hour chart shows that yesterday, the share price jumped strongly above a short-term downside resistance line drawn from the high of December 7th. This happened after the company delivered its earnings late on Monday. The stock is now sitting above all of its EMAs and this could attract more buyers into the arena. Even if the share price slides a bit lower, as long as it continues to trade above the 200 EMA, we will stay positive, at least with the near-term outlook.
As mentioned above, even if we do see a small corrective move lower, as long as the 200 EMA provides strong support, we will continue aiming higher, where the next possible target might be at the 171.00 hurdle, marked by the high of last week. If the buyers continue to apply pressure, NKE might drift to the 173.33 level, which is marked near the highs of December 1st and 7th, or in other words is the current highest point of December.
The RSI is above 50, but points fractionally to the downside. Such a picture on the RSI may support the idea above, where we might see a small correction lower, before a possible move higher. The MACD, although it is pointing higher, it sits above the trigger line, but below zero. This means that the MACD is still showing negative price momentum. Because our two oscillators are currently sending contradicting signals, we will not put too much emphasis on them, at this time.
Alternatively, if the share price ends up falling below the aforementioned downside line and below the 159.34 hurdle, marked by the high of December 20th, that could spook some buyers from the arena for a while. The stock could then travel to the current lowest point of December, at 155.47, a break of which would confirm a forthcoming lower low and NKE may end up sliding to the 150.06 level. That level is marked by the low of October 11th.
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