Chart of the day

Where do we stand fundamentally?

Nike reported mixed results for fiscal 2024, with annual revenue nearly flat at $51.4 billion, and net income increasing 12% to $5.7 billion. Gross margins improved slightly due to reduced supply chain costs, but sales challenges persisted, particularly in key markets like China.

Several analysts have recently adjusted their ratings and price targets for Nike. TD Cowen lowered its price target to $73, citing challenges like increased competition, potential tariff risks, and slowing demand for some of Nike's iconic products. On the positive side, Needham initiated coverage with a "Buy" rating, seeing potential for brand recovery under new leadership​

NKE is retesting the broken downside resistance 86. We need to see a breakout above this level and 100 for a reversal higher. I expect a downside continuation in a third wave lower to test 40.

We are in the development of the third wave lower medium-term and it will be invalidated only upon a break above 102. We have a well-defined downside channel that is leading the third wave lower.

_{Try a short trade entry with a stop loss above 98 to target 50 and lower. You can trade it with put options as well.}

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