Nike Inc. (NKE) could jump even higher in 2020. The company produces a wide range of sports equipment but today we just want to focus on the charts and indicators of the company's stock.
In the daily bar chart of NKE, below, we can see that the shares have performed strongly the past year. NKE is trading above the rising 50-day simple moving average line and well above the rising 200-day moving average line.
The daily On-Balance-Volume (OBV) line has trended higher the past year and has made new highs for the move up in recent weeks. A rising OBV line is a sign that buyers of a stock have been more aggressive as the line moves higher when more volume is traded on days when the stock closes higher.
The Moving Average Convergence Divergence (MACD) oscillator is well above the zero line in a bullish setup.
In the weekly bar chart of NKE below, we can see that prices have doubled over the past three years. NKE is trading above the rising 40-week moving average line.
The weekly OBV line has made a new high for the move up and confirms and supports the new price highs seen this year for NKE. The weekly MACD oscillator also confirms the price gains we have seen in recent months.
In this first Point and Figure chart of NKE, below, we used daily data and a $120 price target is being projected.
In this second Point and Figure chart of NKE, below, we used weekly price data. Here a potential longer-term price target of $126 is being suggested.
Bottom-line strategy: NKE could pullback to the $98 area but I would consider that a buying opportunity. Traders could go long NKE near $98 risking below $96 looking for gains to $120 and then $126 in the weeks ahead.
