On September 26, 2014 Nike, Inc. (NKE) gapped up after the company reported stronger-than-expected first-quarter fiscal results. The stock gapped up from the previous day’s close of $79.75 to $87.93. NKE has been in a strong uptrend since 2010 and keeps pushing new highs. Since there is no negative price resistance to the left in NKE’s chart, it looks like it has a solid future.
Volume
NKE traded over 17.5 million shares on the gap day. Their normal average is 3.7 million which shows you the institutional interest in owning at these highs.
Key Area
Watch for price support to build into $87.00 – $90.00.
Side Note
As fund managers chase performance (window dressing) into the end of the quarter I am sure NKE will be on their list.
Trade Setup
Buy over $90.25
Stop under $86.90
Target into $120.00
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