Nike Inc. (NKE) is soaring higher in pre-market trading. With prices indicated around $78 this morning, a fresh look at the charts and indicators seems to be in order. Let's lace up and check them out this stock that has been upgraded to Buy by TheStreet's Quant Ratings service. In our last review of NKE earlier this month, we wrote, "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."
In this daily bar chart of NKE, below, we can see that prices corrected down to the rising 50-day moving average line, but stayed above our suggested stop order of $68. With prices up above $78, our price targets of $80 and $81 are in focus. The 200-day moving average line continues positive. The anticipated heavier trading volume today will probably lift the On-Balance-Volume (OBV) line to a new bullish high. The Moving Average Convergence Divergence (MACD) oscillator was correcting down towards the zero line in the past week, but it is likely to turn up again.
In this weekly bar chart of NKE, below, we went back five years to show the bigger picture. The price action in 2016 and 2017 in the $50-$60 area looks like a high-level secondary base that could support gains to $100. The 40-week moving average line is bullish. The weekly OBV line shows improvement from October. The weekly MACD oscillator narrowed recently, but will probably widen out again with this rally.
In this Point and Figure chart of NKE, below, we still have our $81 price target. A new consolidation pattern may be needed to project a higher price target in the weeks ahead.
Bottom line: Traders and investors in NKE should continue to hold longs. I would raise sell stops to $70 from $68. My price targets remain $80-$81, $86 -- and now I would think about adding $100.