Welcome on my Chart Outlook BLOG.

NIKE and the "son-of-a-bitch" - The key levels to watch


The chart nicely shows the buidling of the bubble in NIKE. It originated with a stock price around US$ 0.15 in the 1980s and it rose to the present level at US$ 82.40.
The company and the stock have attracted media attention by the US Football player Colin Kaepernick, whom President Trump was quoted to have called a son-of-a-bitch.
There are a lot of statistics in the media of how this has helped the company’s sales or how it has hurt sales.

What seems clear is that the bubble is still building with Wave 5 in progress. Wave 5 is the final wave in the entire uptrend from the 1980s. Wave 2 was formed in 2008. Wave 4 was formed in the 2-year correction in 2016/2017.
Given the size of Wave 4 and the breakout earlier in 2018 it seems to me that Wave 5 is not complete yet. It seems too short in relation to Wave 4 and the Waves 1 and 3.
Yet, the stock is now testing resistance at 84, a break of which will signal the next resistance at 91 and 98. Possibly even, Nike could reach 115/120 before the bubble will burst.
A break of 80 will signal a major correction to the next support at 78 and 76.

The chart provides good guidance at this point:
SELL if 80/78 is broken.
BUY if 84 is broken.

Rolf Bertschi