Getting A Jump On Nike's 15% Rally
by Mike Paulenoff
June 27, 2021 • 6:02 PM EDT
During the early afternoon last Thursday (6/24), several hours prior to the release of Nike's (NKE)'s quarterly earnings, Mike Paulenoff posted his chart analysis designed to answer the following question: Does the technical set up in NKE heading into earnings hint at a likely directional price reaction to the news?
Mike wrote: "From the look of my attached Big Picture WEEKLY Chart, the stock looks like it could be about to emerge from a 6-7 month high level bullish digestion period and pattern, into a new upleg that projects to new ATH's above 147.95... possibly in reaction to tonight's earnings report. A climb above key resistance at 138.00-139.40 will trigger projections in the vicinity of 150... If the near and intermediate term technical set up in NKE is hinting at a reaction to the earnings news, I am of the opinion that the reaction is likely to be to the upside."
NKE was trading at 133.56 at the time. After NKE reported stellar earnings that beat The Street's expectations across all metrics, the stock rocketed above Mike's projected next upside target of 150.00 to a post-earnings high of 154.83, or 15.9% above where NKE was trading at the time of Mike's alert.
What's next for NKE? Mike's chart on NKE (shown below) shows his preferred near-term price path, but the situation undoubtedly will be fluid and dynamic, which will require Mike to post frequent updates in the upcoming sessions evaluating developing risks and rewards implied by NKE's unfolding pattern.
NKE is the latest example of Mike informing MPTrader members about a potentially significant directional price move derived from decades of experience recognizing and interpreting technical set-ups in a particular stock, ETF, macro index, crypto currency, commodity, or precious metal.
Join Mike and our members for constant intraday analysis and discussion about opportunities throughout the trading day.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international
markets, plus key ETF component stocks in sectors like technology, mining, and banking.
Sign up for a Free 7-day Trial!
More Top Calls From Mike
Last Wednesday (July 14), with AAPL trading at 148.65 but off of its new all-time high at 150, Mike Paulenoff alerted MPTrader members to potentially consequential yellow caution flags emerging in his technical setup work.
Mike wrote:
This morning, JPM raised its Target Price to 175, one day after Citigroup raised its Target Price to 170. Do I hear 180... 185? Crickets at the moment. The Street is falling all over itself in its bullish view of AAPL.
Back on June 24, Mike Paulenoff alerted MPTrader members to a developing bullish technical set-up in solar panel producer Jinko Solar Inc. (JKS):
Mike wrote: "Time to keep an eye on the solar names (JKS, CSIQ, SPWR, FSLR, DQ) because all of them have the right look of either nearing the conclusion of deep multi-month corrections, or starting new uplegs after already completing deep corrections. My sense is that these names ran up big time into the Nov.
On May 27, Mike Paulenoff posted the following bullish commentary about iron ore producer Cleveland-Cliffs (CLF):
"CLF is up 6.7% today precipitated by the company's announcement that it intends to pay off a slug of debt of holders of Senior Notes due in March 2025! There is nothing Wall Street loves more than profits, but a close second is reduction in debt. Technically, CLF's U-Turn off of Monday's low at 17.
On the morning of May 27th, just hours after Nvidia Corp. (NVDA) reported earnings, Mike Paulenoff gave this bullish assessment to MPTrader members:
"In the absence of damaging weakness beneath last eve's algo, knee-jerk spike low at 611.02, and subsequent follow-through beneath 600, my technical work remains 'friendly,' and points higher, to test the ATH at 648.57, in route to 675-680 thereafter."
The stock, which was trading at 628.
Back on July 16, 2020, Mike Paulenoff alerted MPTrader members to a potential turn in the long-term downtrend in the grains markets, reflected in his trend analysis of DBA (Invesco DB Agriculture Fund), an ETF consisting of agricultural commodities (grains, softs, and livestock).
In that changes in inflationary expectations are at the forefront of investor's considerations for the first time in decades, Mike's focus on a potential sharp climb in grains prices certainly was well-timed and well-received.
