Nike Inc. (NKE) was reviewed in the beginning of September and I recommended that "NKE has reached our price objective and is extended when compared to the 200-day moving average line. I recommend booking some profits on NKE and raising sell stop protection to a close below $76 - the July lows - on the balance." Prices got a brief bump up in response to reports of increased sales from their new marketing campaign around Colin Kaepernick, but now the stock price is below when the ads came out. Interesting. Let's dig further.
In this daily bar chart of NKE, below, we can see can see that prices have broken below the cresting 50-day moving average line. The slower-to-react 200-day moving average line is still rising and intersects around $73. The daily On-Balance-Volume (OBV) line shows a small peak in late September and the trend-following Moving Average Convergence Divergence (MACD) oscillator is close to crossing below the zero line for an outright sell signal.
In this weekly bar chart of NKE, below, we can see that prices are above the rising 40-week moving average line. The major trend is still up. Moving averages are lagging indicators but we can see that the weekly OBV line is pointing down and the MACD oscillator on this time frame has crossed to a take profits sell signal.
In this Point and Figure chart of NKE, below, we filter out the noise and we ignore volume and time. This chart shows a downside price target of $68 for NKE - back down to a strong support zone.
Bottom line strategy: traders and investors must be looking ahead of the Colin sales bump. Prices have turned lower and look headed for key support in the $70-$65 area.