Fine, but let's take a couple of minutes to see if the charts and indicators are in agreement with the fundamentals. It always helps to be on the same page.
In this one-year daily chart of NKE, above, we can see the stock has rallied above the 50-day moving average line and its slope has turned positive, but NKE is still below the declining 200-day moving average line. The On-Balance-Volume (OBV) line has been in a decline the past year, and even though prices have firmed since early November, the OBV line has not responded in kind. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but could soon cross to a fresh liquidate-longs sell signal.
Putting all these signals together, I feel NKE needs more base building and stronger signs of accumulation before becoming bullish on the shares.
In this three-year weekly chart of DIS, above,we have mixed signals. DIS is above its rising 40-week moving average line, but there is a fair amount of potential chart resistance from $110 to $120. The weekly On-Balance-Volume (OBV) line has been neutral at best the past year. The MACD oscillator is pointed up but it should not take much to see the two lines begin to narrow.
Bottom line: Can DIS rally from here? Yes, but overhead resistance and no signs of accumulation point to a failed rally, not renewed strength.
In this daily chart of AMGN, above, we can see the stock has been in a sideways trend the past year. Prices are above the rising 50-day moving average line, but the flat 200-day moving average line acted as resistance earlier in January. The daily OBV line has been positive since early November. The MACD oscillator is poised to cross to a liquidate-longs sell signal.
In this three-year weekly chart of AMGN, above, we can see a wide consolidation pattern. Prices have stalled below the flat 40-week moving average lie while the weekly OBV line has continued lower the past five months. The weekly MACD oscillator just gave a cover-shorts buy signal.
Bottom line: In the short run and the long run, it looks like AMGN will struggle. The long side could prove profitable but traders and investors should be nimble.