We reviewed Nike, Inc. (NKE) in late February, writing, "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."
NKE has been consolidating its gains in the last three months and new highs for the move up are likely in the days ahead. Let's try on some of the bullish indicators -- maybe we have gone up a shoe size.
In this daily bar chart of NKE, below, we can see that prices are above the 50-day moving average line and the rising 200-day line. Prices have not yet broken out to new highs above their February peak but the daily On-Balance-Volume (OBV) line has already made a new high. The trend-following Moving Average Convergence Divergence (MACD) oscillator has turned up above the zero line for an outright go long signal.
In this weekly bar chart of NKE, below, we can see a mostly bullish picture. Prices are above the rising 40-week moving average line. The weekly OBV line turned positive in October and the MACD oscillator has narrowed toward a fresh outright go long signal.
(Check out Stephen Guilfoyle's take on "The Masters Tournament of Athleticwear: Nike vs. Under Armour (UAA) )
In this Point and Figure chart of NKE, below, we can see a consolidation pattern since January (look for the "1" on the chart) and a trade at $70.15 would be a breakout. An $80.99 price target is projected.
Bottom line: NKE looks poised to break out on the upside and make new highs. Traders and investors could go long above $70 looking for gains to $80 or perhaps higher.