Nike Inc. rallied from US$35.30 to US$68.19 (A-B) above its rising 40-week Moving Average (40wMA) and above a rising trend-line (dotted line). In early 2016, the stock fell below its average and the rising trend-line and stayed in a wide horizontal trading range mostly between US$50 and US$60 (dashed lines). The recent rise above US$60 signalled a breakout from this range, renewed investor interest and the start of a new major up-leg (C). There is good support near US$62-63 but only a decline below US$57-58 would be negative. Point & Figure measurements provide targets of US$69 and US$74. The large trading range (dashed lines) supports higher targets.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com.
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