I was reading an article today that said Kevin Durant signed a major $300 million deal with Nike. Wow! $300 million for shoes. Epic job, Kevin! Here’s the article if you’re interested.
I don’t even watch basketball that much. I love sports as you know, but basketball…not the biggest fan, although I will watch the finals. The article mentioned both Under Armour (UA) and Nike, Inc. (NKE). I thought to myself, how convenient. A chance to mix sports chatter with stocks! Excellent!
Chart Levels
Reviewing the chart for NKE the first thing that stands out is the rock solid resistance at $80 and some change. The second thing I notice is NKE has been making higher lows for quite some time, but more importantly, since February 2014.
It appears evident to me that NKE is in a big ascending triangle, which is simply a huge distribution phase. With a picture perfect gap in March 2013 and the resting of all indictors, NKE is primed to break out. After all, NKE is a great company with genius marketing and advertising departments. It has one of the world’s most simplistic and recognizable logos and brands. And it’s ripe and ready to trade.
Bottom Line
All we have to do is wait and be patient. I would wait for a close above $80.75 before going bullish. The two to three month target would be $92 with a stop around $77. Let’s see if you can buy some sweet shoes with this plan. Until next time, folks!
