Sneaker and apparel maker Nike ( NKE) is scheduled to report their Q2 earnings figures after the close of trading Monday. We tried on the charts of NKE back on September 20 and recommended to Real Money readers that "There are enough negative or bearish developments on the four charts above to recommend a defensive position on NKE ahead of earnings this Thursday. Avoid the long side."
Let's check on the charts again. 
In this daily bar chart of NKE, below, we can see that the price of NKE stayed weak into early October and then rebounded to a slight new high in November. NKE has rolled over again and is pointed lower ahead of their earnings report. Prices are trading below the rising 50-day moving average line but above the rising 200-day line.
The On-Balance-Volume (OBV) line has been weak since early November and tells us that sellers of NKE have been more aggressive with heavier trading volume on days when NKE has closed lower. The Moving Average Convergence Divergence (MACD) oscillator is ready to cross below the zero line for an outright sell signal.
In this weekly Japanese candlestick chart of NKE, below, we can see a weak looking picture. Prices are pointed down (red candles) but remain above the rising 40-week moving average line. NKE has tested the 40-week line a number of times in the past three years.
The weekly OBV line is a problem for bulls as it has been in a decline the past 12 months and suggests a significant amount of distribution (selling). The MACD oscillator is pointed down in a take profit sell mode.
In this daily Point and Figure chart of NKE, below, we can see a potential price target in the $151 area.
In this weekly Point and Figure chart of NKE, below, a price target in the $151 area is shown.
Bottom line strategy: I have no special knowledge of what NKE is going to report for earnings after the close of trading today. The charts are weak and the broad market averages are not helping. Avoid the long side for now.
