Try this $NKE Chart on for size – April 27, 2023
This is Scott with your Chart of the Day. This is a really quick one here from Nike ( NYSE: NKE ). Try this on for size, we have a little bit of a cup and handle pattern here on NKE ( NYSE: NKE ).
You can see how the stock came off the October low, it consolidated right around this 128.00-130.00 range, pulled back into the moving averages, and found support at 100 EMA. And now has a little bit of a handle building just above that 50-day moving average.
We have clear support right around that 50-day, a potential backtest of this consolidation breakout zone. And then we have a little bit of a short base there. So a tight range here on NKE ( NYSE: NKE ) for the last couple of weeks. What I want to see from this stock is a breakthrough the 127.00 level coming on volume.
I think it makes sense to have an alert, on NKE ( NYSE: NKE ), just around that 127.40 zone. I am going to set an alert on my software, right there, and look for a potential breakout of that area and maybe even a retest of the high from back here at around 131.00. And so you want to watch and see how this stock holds up around these moving averages.
Maybe this is a place where you get a small placeholder position and you are adding, with confirmation of higher prices. And layering in close to the moving averages, keeping a low-cost basis and keeping it on your radar, and then watching for that moment to move up. So that is one level that I am watching here on Nike ( NYSE: NKE ). I want to see if this can confirm to the upside.
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