On October 3rd, 2022, Nike (NKE) traded at a local low of $82.22. From that low it rallied 59.7% in four months and traded at a local high of $131.31. Since then, NKE traded at a narrowing triangle of a higher low ($88.66) and a lower high ($123.39).
Recently, Nike’s stock is on a down move again. Price ended last week at $102.08.
The interesting detail is that during the month of December 2023, NKE kept respecting both its body and wick resistance lines.
Here are the stock, the support lines, and the resistance lines as September ended. The last trade print of that month was at $95.62:
Zooming in:
Resisting from the north are the 22-month SMA (since March 2022) and the 31-month SMA (since May 2022). Supporting from the south are the 131-month SMA (since November 1995) and the 146-month SMA (since February 1997). Yes, these support lines are from the nineties…
Here are the same actors, after December 2023 and a first week of January 2024 ended:
Zooming in:
It is amazing to see how both the body and the wick resistance lines were respected during December 2023. NKE may be trading into the narrowing triangle, formed by its best respected monthly moving average support and resistance lines.
With that, Nike’s stock may come down to visit its best respected support lines for the first time since the nineties.
A monthly chart is a slow building chart. We’ll come and revisit.