In the middle of December we reviewed Dow component Nike Inc. (NKE) writing, "NKE is extended and could see a retracement. If prices pull back closer to the breakout at $60 on light volume I would consider probing the long side risking a close below $59." Shortly after that was published we got to see NKE quickly dip to near $60 (see the daily chart below).
This month NKE reached our $69 price target. Doesn't get much better than that. But in this business you cannot rest on your laurels for long so what do the charts for NKE look like now?
In this daily bar chart of NKE, below, we can see all our go-to indicators in a bullish alignment. Prices are above the rising 50-day moving average and the rising 200-day line. In early December there was a bullish "golden cross" as the 50-day average line crossed above the slower-to-react 200-day line. The daily On-Balance-Line (OBV) line has been rising with the price action since October.
The Moving Average Convergence Divergence (MACD) oscillator crossed above the zero line in late October for an outright go long signal. The oscillator is turning upward now for another buy signal.
In this weekly chart of NKE, below, we can see the saucer-bottom formation from 2016 into 2017, the breakout at $60 and the recent new highs. Prices are above the rising 40-week moving average line. The weekly OBV line is mildly positive and the MACD oscillator is rising and bullish.
In this Point and Figure chart of NKE, below, we can see the recent breakout at $69. A possible upside price target or objective of $78 is indicated.
Bottom line: NKE broke out of a large base at $60. It has reached one upside price target of $69 but the charts are still positive and pointed up. The $78-$80 area is the next price objective. Investors and traders can stay long risking below $64 looking for $78+ on the upside.