Is Nike on track to surge to a record-high?
Shares in Nike have fallen just over 10% since recording a record high on 21 December 2020, just below $148.00. However, the shares are up nearly 50% in the past six months. The trend in athletic wear during the lockdown periods and a successful online strategy from the company has caught the eyes of many investors.
The stock has already bounced higher from its 100-period exponential moving average, as shown by the green line in the chart below. This area also coincides with a strong trend line support zone shown by the ascending black line.
Source: Admiral Markets MetaTrader 5, #NKE, Daily - Data range: from Apr 30, 2020, to Feb 2, 2021, performed on Feb 2, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
The bounce from the combination of technical support levels has proven to be quite strong. However, all eyes will be on the company’s latest quarterly earnings report on the 25 March which is still some way out but provides some interesting front-running opportunities.
In the last earnings report, the company posted an 84% surge in digital sales and beat analyst expectations for both sales and profits. If this trend can continue the next earnings report could be quite interesting and investors may start positioning themselves early on.
Potential targets could be the all-time high price level or the big round number just above it at $150.
Source: BarChart, February 2, 2021
According to BarChart, analysts remain bullish on the company’s stock price. While the technology sector is leading the race right now, high-quality companies that provide in-demand consumer goods are still high on investors’ watchlists.
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