NYSE:NKE may be ready to breakout.

NIKE INC -CL B (NYSE:NKE) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:NKE.

What is the technical picture of NYSE:NKE telling us.

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Overall NKE gets a technical rating of 7 out of 10. NKE has been a medium performer in the overall market. Some doubts are observed in the medium time frame, but recent action was very positive.

• The short term trend is positive, while the long term trend is neutral. So this is evolving in the right direction.
• NKE is part of the Textiles, Apparel & Luxury Goods industry. There are 48 other stocks in this industry. NKE outperforms 72% of them.
• NKE is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• When comparing the yearly performance of all stocks, we notice that NKE is one of the better performing stocks in the market, outperforming 83% of all stocks. However, this overall performance is mostly based on the strong move around 4 months ago.
• NKE is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.

Why is NYSE:NKE a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:NKE scores a 8 out of 10:

NKE has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 128.5. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 124.53, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for NKE in the last couple of days, which is a good sign.

Trading breakout setups.

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Our Breakout analyzer lists more breakout setups and is updated daily.