Nike is in a countertrend, and we are waiting for the downtrend to be over

On September 28, 2023, Nike (NKE) hit a low of $88.6 a share, and an uptrend started. The traded up to $123.30 on December 23, 2023.

A gap down occurred in Nike, and right now the stock is exhibiting a consolidation pattern. We think this consolidation pattern continues, and we look for a big move one trading day to the downside. We think once this extended down day occurs, Nike’s stock can see a reversal in trend and a new uptrend can occur.

Once a new uptrend is in place, the gap from 12/21/23 can be partially filled, with the potential for a full filling of the gap. Once we think the new uptrend starts which we look for it to be around $95 - $100 a share, we think the stock can rise to about $116/share.

If Nike does get down to our target buy area, we would look to trim our position at about $116, a share.

Our strategy would be to buy one-fifth of our position around $100, and continue to add as the stock could trade lower. Our position strategy is going to be non-aggressive unless the stock trades higher we look to average on the way up.

Nike is a leading around the global in apparel, luxury goods, and footwear. It leads many categories across the world in sales and brand recognition. The company has a wide economic moat, and we see that as a tailwind for this stock.