Nike’s stock price showed bullishness after breaking below the $100 level. The price hit a low of $96.5 and then reverted back to close at $102.36 on Friday’s session. The company announced a dividend of $0.34 with with ex-date of 1st September ‘23 and a payment date of 2nd October ‘23.
The daily chart shows that the price has been volatile with ups and downs for the last 3 months. Moreover, the price slipped below the key moving average of 50-EMA showing that the bears dominated the short-term trend.
The price action analysis of NKE stock reveals that the price declined sharply after breaking below the previous swing low of $104 and the price slid below the round levels of $100. Thereafter, the bulls showed interest in defending the $100 level, and the price managed to close above the round level on Monday.
The Analysts offering a one-year price forecast for Nike Inc. (NYSE: NKE) have a max estimate of $151.8 and a minimum estimate of $92. Nike Inc. (NYSE: NKE) engages in the design, development marketing, and sale of footwear, accessories, equipment, and services.
Nike stock derivatives data analysis states that the current implied volatility in the market is 30.16% with a decrement of 2.83% in the last trading session. The at-the-money strike price has 1808 open contracts on the put side and 2808 open contracts on the call side indicating the dominance of sellers at the current level. The PUT/CALL ratio is 1.13 suggesting an overall domination of buyers in the overall option chain data.
Nike Stock Price Forms A Channel Pattern Over The Daily Chart
The Nike share price currently trades at $102.36 and is trying to recover the decline and hold the $100 level. The Analyst’s outlook for the price trend in the short term shows that the stock price may remain in the beamish phase until the price stays in the channel pattern. The price may take some pullbacks and decline further in the short term.
Moreover, for the stock to turn bullish the price must break above the channel pattern and sustain above the key moving averages. However, it requires more buying volume from the lower side to counter the selling pressure and sustain at the upper levels.
Technical Indicators Shows Weakness On The Daily Nike Chart
The EMA analysis shows that the price could not sustain above 50 EMA, indicating the dominance of sellers in the short term. The long-term trend is already bearish as the 50 EMA is below the 200 EMA.
The technical indicators including RSI and MACD opinion rating for the stock is a 90% sell with a strengthening short-term outlook on maintaining the current trend.
Conclusion
Nike is a footwear and accessories company that announced a dividend of $0.34. The stock price dropped below $100 and then bounced back to $102.36 on Friday. The price has been volatile and bearish for the last 3 months, breaking below the 50-EMA and the previous low. Analysts have a wide range of price forecasts, from $92 to $151.8. The stock may remain bullish until it stays in the channel pattern, but it needs more buying volume to break above the key moving averages and to turn bullish.
Technical Levels
- Support levels: $99.58 and $94.43.
- Resistance levels: $111.3 and $115.45.
