Nike buyers pushing while the World cup is supporting the price
14 December 2022
Nike Inc (symbol ‘NKE’) stock value gained more than 10% in November. The company is expected to report its earnings for the quarter ending November 2022 on Tuesday 20th of December after market close. The consensus EPS is $0.66 compared to the result for the same quarter last year of $0.83.
‘Following a successful month in November Nike’s share continues to make gains while the world cup is still on. The share price is boosted with the sport giant sponsoring two of the biggest contestants, Brazil and France which are still on track for the title, bringing in turnover for the company.’ said Antreas Themistokleous, an analyst at Exness.
Based on technical analysis the price made a valid break above the downward trendline and is currently making a correction to the down side after finding resistance on the $112 area which is an inside resistance level since late August.
The value of the share is at $108 just above the 23.6% of the Fibonacci retracement level of the last major swing. Since the estimated EPS is the lowest for the year and the 50 day moving average is still trading below the 100 day moving average we might see the correction continuing to create losses for the share in the short term with a first point of support laying around the $103 price area just below the 23.6% of the Fibonacci and also the 100 day moving average.
If there will be further continuation to the upside we might see some resistance at the $112.50 area which was the last reaction area for the price in the previous week and also a point near the upper band of the Bollinger bands.