Based on our report on the 29^th April, Nike (US: NKE) short was in effect when prices broke below the lower bound of the wedge. Although prices rebounded on the 4^th of May, prices were met with resistance at 91.39. Based on the technicals, the bearish sentiment of Nike will continue.

• Elliott wave theory indicates that the 5 impulse sub-wave has been completed and the B wave potentially has complete the 3 sub-wave movements. Hence the start of another 5 sub-wave of wave C will be forming.
• Prices were met with resistance twice at 91.39, forming a potential double-top. Furthermore, the double-top rejected the 200 Moving Average twice.
• On the 2^nd top of the double-top formation, the bearish engulfing candle was formed and it rejected the 200 Moving Average as well.
• The death-cross is still valid although prices have been trending above the 50 Moving Average lines. However, prices should remain below the 200 Moving Average

*The technical call is valid for 3 weeks only.

*95.00 remain a strong resistance and should it break, it may proceed to fill the gap at 96.98-99.58.

CHART LEGENDS

Moving average

Red line = 200 SMA Line

Blue line = 50 SMA Line