Nike, Inc. (NKE) was reviewed last month, and I wrote that, "NKE is breaking out on the upside from an ascending triangle formation. Ideally Wednesday's trading volume or turnover will be heavy and tell us that traders and investors are buying the new high for the move up. Risk to $60.50 and look for gains to around $80 or higher."
NKE has moved nicely higher in the past four weeks so let's see if we can adjust our price target and our stop loss recommendation.
In this daily bar chart of NKE, below, we can see that prices have continued their rise after their upside breakout last month. NKE has lifted higher away from the rising 50-day moving average line and the rising 200-day line.
The volume pattern looks like it is shrinking however, but the On-Balance-Volume (OBV) line is still positive.
The daily Moving Average Convergence Divergence (MACD) oscillator is still above the zero line but looks like it may cross to the downside for a possible take profits sell signal.
In this weekly bar chart of NKE, below, we can see that prices are well above the rising 40-week moving average line.
The weekly OBV line is positive but it has yet to make a new high for the move up to confirm the breakout in price.
The weekly MACD oscillator is in a bullish mode.
In this Point and Figure chart of NKE, below, we can see the upside breakout and a price target of $81.
Bottom line: If you are long NKE from lower levels I would suggest raising your stop protection to $68 from $60.50. Prices are still pointed up and traders should continue operating from the long side. Prices are $80, $81 and $86.