Will Nike run to its all-time high on earnings?

Marec 12, 2021 11:30

Shares in Nike have rallied nearly 150% higher since the March lows of the coronavirus pandemic last year. However, so far this year, the sports retailers share price has traded in a range between ~$148.00 and ~$128.00. 

With a third-quarter earnings report due on 18 March, traders will be watching to see if the price can break through the range and run to its all-time price level around the ~$148.00 price level and continue the trend higher. 

Source: Admirals MetaTrader 5, #NKE, Weekly - Data range: from Mar 23, 2014, to Mar 11, 2021, performed on Mar 11, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.

 

Currently, the market is expecting Nike to report a year on year decline in earnings but on higher revenue. The consensus estimate is for earnings of $0.75 per share which is a year on year change of -3.9%. 

If the actual report is higher than the consensus estimate, the price may try to break out of the range towards the upside. If the report is much weaker than the consensus estimate, we could see a deeper correction and a move back to the weekly 50-period (red) exponential moving average.

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