In the beginning of the year NKE was trading over $100. The stock, however, was doing that while respecting its 22-month SMA resistance line for nearly two years.
We were wondering whether NKE would meet its long-term support lines, the 131-month SMA and the 146-month SMA, which registered in November 1995 and in February 1997, respectively.
The case still held in March 2024.
That month, however, marked the beginning of the big break. The last trade of March was inked at $93.98, 6% below the $100 mark:
Zooming in:
April and May of 2024 were kinda muted but then came June, and with it came Nike’s quarterly earnings report.
That didn’t bode well.
The stock crashed nearly 20% the next day, and that translated to a violent break of the moving average support lines that held NKE since the 1990s:
Zooming in:
Nike’s stock ended last week at $73.42, after trading at a low of $71.67 on Wednesday.
We’re almost half through July and we’re interested to see how the stock will end the month. Can NKE rebound back above these legendary moving average support lines, or is the stock now low on fuel?