LONDON - OCTOBER 16: A general view of the Limited Edition 'What The Dunk Shoes' at nike Town on ... [+]
Nike
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
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
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.