Trade of the Day – Nike Inc. (NYSE: NKE) January 29, 2024 109

Trade of the Day

Nike Inc. (NYSE: NKE)

(Current Price: US$102.75) – TECHNICAL BUY

Buy stop: US$103.27     Stop loss: US$100.00 (-3.17%)    

Take profit 1: US$110.00 (+6.52%)     Take profit 2: US$116.00 (+12.33%)          

 

 

(1): Nike Inc. found support at the US$102 level, which is a 61.8% Fibonacci retracement level using the swing low of US$88.36 formed in September 2023 and swing high of US$123.39 formed in December 2023. The US$102 level is confluent with a previous horizontal resistance from September to November 2023

 

(2), (3) & (4) : The price is could potentially break out of a downtrend resistance line with bullish signals such as a fresh bullish crossover on the Moving Average Convergence Divergence (MACD) technical indicator, and bullish divergence recorded on the Relative Strength Index (RSI) technical indicator

We believe should the price rebound from the current support level, it could head towards take profit level 1 at US$110, which was a horizontal swing high resistance in end-December 2023 following an earnings release gap down. It could then head higher towards take profit level 2 at US$116, a retest of the previous horizontal support level breakdown from February to April 2023

Expected timeline of the trade is 2-12 weeks from the date of report issuance

 

This counter is available for CFD trading and is available on POEMS US Asian Hours, Singapore’s first platform to provide trading of US Equities during Asian Market opening hours (from 9am SGT). For more information, please click here, or scan below:

 

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About the author

Profile photo of Zane Aw

Zane Aw
Technical Analyst
PSR

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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