Nike (NKE) broke out to new all-time highs this morning. Even though prices have had a great run from their 2009 low (see the chart below), this stock is far from tired.
Notice how prices have rallied (above) in an almost parabolic fashion with the steadily rising On-Balance Volume (OBV) line. Pullbacks or reactions have been shallow and short-lived, typical of strong bull markets. The $64,000 question is where can NKE rally to? We'll suggest two technically derived price objectives. One technique that chartists have applied over the years is to take a multiple from a base to come up with a target. In the chart above we can see the price action across the $15 level. Notice the stall in NKE at $45 and $75, a triple and a five-fold increase from $15. If NKE makes a ten-fold advance we could see Nike reach $150 a share.
Point and figure charts are not all that popular but they can serve a useful purpose when looking for long-term price objectives. In this chart above of NKE we can see a price target of $182 extrapolating the sideways price action to the upside.
How high can you jump?