Nike Is Still Running in Place

NKE could break out to the upside with a strong close over $135, though a close below $125 would weaken the chart picture.
Stocks quotes in this article: NKE

Nike (NKE) has been trading sideways around the $130 level recently and may continue to run in place until a sustained trend up, or down, starts.

Looking at this one-year daily bar chart of NKE, we can see it has been in an uptrend above the rising 50-day and 200-day moving averages. Recently, NKE has traded into and around the 50-day average. NKE's On-Balance-Volume (OBV) line peaked in August. We can see a bearish divergence between the price action in October/November/December and the momentum study.

This longer-term chart of NKE, above, shows a great success story. NKE is above the rising 40-week moving average. The OBV line is up with the price action. The only sign of caution is that the Moving Average Convergence Divergence oscillator generated a "take profits" crossover above the zero line.

A crystal ball would be useful right now as the picture is not yet clear. NKE could break out to the upside with a strong close over $135, while a close below $125 would weaken the chart picture. Stay tuned.

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TAGS: Investing | U.S. Equity | Consumer Discretionary

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