Nike – The Stock That Keeps on Giving

0
132

Nike

(Figure): Daily chart for Nike Inc (NYSE:NKE)

Nike Inc (NYSE:NKE), the sports good manufacturer has been having a fantastic year so far. The company has been doing very well when compared to its closest competitor Adidas. Adidas, even after being the official merchandise partner for the Fifa World Cup has faced hurdles with regards to the overhang from the geopolitical tensions in Russia and Ukraine.

The company had to revise its profit and revenue guidance for the current year, pointing out to the disappointing growth in the Eurozone and other emerging economies. Nike Inc (NYSE:NKE) on the other hand hit a fresh all time high after showcasing a stellar set of results which beat all analysts expectations. The company has been seeing growth come back to it golfing business which was a cause of concern the last time the company reported results, this is being seen as huge positive in the near term. Also, analysts believe that Nike Inc (NYSE:NKE) is a good portfolio stock for investors chasing high dividend yields.

 

On the daily chart for Nike Inc (NYSE:NKE), saw a quiet an up move post the conference call with analysts. The stock broke above from its important daily moving averages on above average volumes which is a positive sign. The momentum indicator is in bullish territory indicative of the strong buying interest available. Even though the stock corrected in yesterdays’ trading session, the momentum indicator shows no sign of reversal. The relative strength index though, has given a sell signal indicating that the inherent strength of the current upmove might be waning and traders need to maintain strict stop losses.

 

Actionable Insight:

Short Nike Inc (NYSE:NKE) at current levels for a short term target at $82.50

Long Nike Inc (NYSE:NKE) if it closes above $90 for an intermediate target at $94.50 with a stop loss below $87.70

 

SHARE
Previous articleCryptocurrency Trading News: Market Edgy as Top Coins Fall
Next articleNo QE Talk from the ECB: EUR/USD Rallies
Deepak Tiwari, a law graduate, has been working as a journalist for six years now. He currently writes on Bitcoin, economic, and Forex related news at ForexMinute, the brand new financial news portal which is making waves among Forex traders around the globe for the innumerable Forex resources it offers for readers, traders and brokers. His other specialties include writing on law & governance, finance, internet marketing, careers, politics, international relations & diplomacy, etc.