Techncial Pulse: Nike Inc May 13, 2020 437


Based on our report on the 29th April, Nike (US: NKE) short was in effect when prices broke below the lower bound of the wedge. Although prices rebounded on the 4th 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 2nd 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.



Moving average

Red line = 200 SMA Line

Blue line = 50 SMA Line

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