Shares Of Nike Will End This Week With A Negative Weekly Chart As A Death Cross Forms On Its Daily Chart.

LONDON – OCTOBER 16: A general view of the Limited Edition ‘What The Dunk Shoes’ at nike Town on … [+] London’s Oxford Street on October 16, 2007 in London, England. Hundreds queued for 3 days to buy the Nike What The Dunk Shoes, a compilation of 31 of the most famous Nike Dunk shoes. The shoes were launched on the same day as the premiere of Nikes first skateboarding movie ‘Nothing But The Truth’. Nike skater Omar Salazar met the first purchaser, Calum Nelson from Kent. (Photo by Gareth Cattermole/Getty Images for Nike)

Getty Images

Nike

NKE
Inc (NKE) will close this week below its five-week modified moving average, which defines a negative weekly chart. The stock will also confirm a death cross on its daily chart next week. A death cross occurs when the 50-day simple moving average falls below the 200-day simple moving average.

The athletic shoe retailer missed earnings-per-share estimates on Thursday, June 29, 2023. This followed eleven quarters in a row of beating these estimates. Nike has a p/e ratio of 32.57% with a dividend yield of 1.20%, according to Macrotrends. The company continues to experience lower margins on sports apparel.

The Daily Chart for Nike

Daily Chart for Nike

Refinitiv

Courtesy of Refinitiv XENITH

Nike was trading higher as the second half of 2020 began. The high on the daily chart was $179.10 set on November 5, 2021. The stock was above a golden cross until February 14, 2022, when the 50-day simple moving average fell below the 200-day simple moving average forming a death cross. This led to the decline to $82.22 set on October 3, 2022.

The rise since this low reached $131.31 on February 2, 2023. A golden cross occurred on January 13, 2023, when the 50-day SMA moved back above the 200-day SMA. Today the 50-day is declining towards the 200- day and a negative cross-over looms for next week.

The horizontal line at $122.35 is for the second quarter of 2023. This line will no longer be in play starting next week. The horizontal line above this line is the semiannual risky level for the first half of 2023. The highest horizontal line is the annual risky level at $150.48, which would be the best level seen for the remainder of this year.

Today the 50-day and 200-day SMAs are $115.31 and $112.54.

The Weekly Chart for Nike

Weekly Chart for Nike

Refinitiv

Courtesy of Refinitiv XENITH

The weekly chart for Nike will be negative if the stock stays below its five-week modified moving average at $112.80 this week and next week. The stock is below its 200-week simple moving average or ‘reversion to the mean’ at $121.33. The 12x3x3 weekly slow stochastic reading is rising at 22.81 but seems likely to decline as early as next week.

Trading Strategy: Buy Nike on weakness to its 2023 low of $102.90 set on June 1, 2023. Reduce holdings on strength to the semiannual and annual risky levels at $147.63 and $150.48.

Source: https://www.forbes.com/sites/richardhenrysuttmeier/2023/06/30/shares-of-nike-will-end-this-week-with-a-negative-weekly-chart-as-a-death-cross-forms-on-its-daily-chart/