Nike Inc. shares traded lower Monday as many apparel and retail companies are trading lower amid COVID-19 Omicron variant concerns. Omicron fears are causing uncertainty in the holiday shopping season.
Nike was down 2.62 percent at $157.13 at market close. After the closing bell, the company reported earnings.
Nike reported quarterly earnings of 83 cents per share, which beat the analyst consensus estimate of 63 cents by 31.75 percent. The company reported quarterly sales of $11.36 billion, which beat the analyst consensus estimate of $11.25 billion.
Shares are up about 3.6 percent to $162.71 in after-hours trading.
Nike Daily Chart Analysis
Shares look to be bouncing off support in what traders call an ascending triangle pattern. The ascending triangle pattern has been forming since the middle of the summer with resistance near the $175 level and is now nearing the end of the pattern.
The stock trades below the 50-day moving average (green) but above the 200-day moving average (blue). This indicates the stock is likely in a consolidation period, and the 50-day moving average may act as resistance while the 200-day moving average may hold as support.
The Relative Strength Index (RSI) has been falling lower since early November and now sits at 31. This borders the oversold area and shows the stock is seeing a strong amount of selling pressure compared to buying pressure.
What’s Next For Nike?
Nike’s stock is forming into the ascending triangle pattern and could be due for a breakout and a strong bullish move if the stock can cross above the $175 level. Bulls want to see the stock hold above the higher low trendline and go on to cross above the $175 level.
Bears want to see the stock fall below this higher low trendline and for the stock to make a strong bearish move. A cross below the trendline may hint the stock is ready to start forming into a downward trend.
By Tyler Bundy
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