In Jim Cramer's Part 2 on the Dow Jones Industrial Average (DJIA) stocks he rounded out his list with two bearish names: Nike Inc. (NKE) and McDonald's Corp. (MCD) , both of which, he said, are still too expensive with high expectations.
Let's check out the charts of NKE.
In the daily bar chart of NKE, below, we can see that prices have declined sharply since their peak or zenith back in January. The slope of the 50-day moving average line is negative and the slower-to-react 200-day moving average line has peaked and begun to turn south.
The trading volume has been heavier this month compared to January and the On-Balance-Volume (OBV) line shows a decline from early January, telling us that sellers of NKE have been more aggressive all year.
The Moving Average Convergence Divergence (MACD) oscillator moved to an outright sell signal last month.