Technical Update - Nike must look lower for support
Equity 2 minutes to read
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Nike trading below pre-Corona peak but could decline further before support
Nike is in a down trend both short-, medium- and long term i.e., on daily, weekly and monthly time period have formed lower lows and lower highs. RSI below 40 threshold confirms this on time periods.
Nike has been trading in a falling channel for the better part of 2022 and is now trading below pre-Corona peak, but it could decline further. Looking at the monthly chart $77 seems to be the level Nike could drop to before there is strong support. Minor divergence on weekly RSI is starting to show divergence which would indicate an exhaustion of the (down)trend. However, with only minor support at 93.44, a level Nike seems to be fast approaching, RSI is likely to drop further meaning RSI can trade out the divergence i.e., RSI to drop below its low at 28.14.
For Nike to reverse the down trend a close above 118.50 is needed
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