Nike stock (NYSE:NKE) has been struggling, and the firm will release results after the market closes. Here are the current upside and negative levels to be aware of.
Update on Nike Stock
Nike (NKE) releases earnings after the market closes on Thursday, and the news comes at a terrible moment. The S&P 500 set fresh 52-week lows, and volatility is still roiling investors.
The athletic-equipment behemoth has not escaped the selloff. Nike stock (NYSE:NKE) hit new 52-week lows this week, despite being down 47% from its all-time high, which is about twice the loss investors have witnessed in the S&P 500 index.
Nike stock (NYSE:NKE) is not immune to the macro concerns that plague many other international corporations.
A rising dollar against many other currencies and supply-chain concerns and inflation will be a headwind for retailers.
For these reasons, investors are wary of Nike’s earnings report, as the stock remains below its pre-covid highs and at multiyear lows.
Nike Stock Market Analysis
Nike stock (NYSE:NKE) has been falling in value in five of the last six weeks. (The majority of stocks may make similar claims.)
Now that the stock (NYSE:NKE) has reached fresh lows in the mid-$90s, it has reached an important crossroads.
Despite the negative sentiment, we might see a post-earnings rally if Nike delivers better-than-expected numbers. This is particularly true after the recent heavy rains.
If we get that pop, we’ll start with $100. That’s a significant psychological threshold that matches the previous summer’s low.
If the shares break through this level, they will reach the $105 level. The decreasing 10-week moving average and the preceding breakout level from 2020 may be seen there.
Active resistance through the 21-week moving average is just above those levels.
Unless the stock can clear those levels, it has a long uphill struggle. However, traders will have a low to compare against in this circumstance.
If the market reacts negatively to the data, investors should watch the $90 to $93 range, then $85. We have a historical support/resistance zone from the post-covid selloff when Nike consolidated and rose higher towards the former. But the latter — $85 — is where I’ll be looking for a drop.
There is a 78.6% retracement from the all-time high to the 2020 bottom in that zone and a significant support zone from the first post-covid rally in April. It would need a 12% drop from present levels to get there. Given the current events, it may be too pessimistic.
In a few hours, we’ll learn more when Nike reports, but keep these levels in mind.
Featured Image – Unsplash © Thomas Serer