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.
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Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
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More Top Calls From Mike
In his September 30th chart analysis for MPTrader members, Mike Paulenoff wrote bullishly about AMD, noting:
"AMD has piqued my interest technically because all of the price action off of its ATH at 122.38 (8/04) into the September lows at 99.51 (9/20) and 99.81 (9/29) has the right look of a complete, or nearly-completed correction of the prior major advance off of the 5/13 low at 72.50. As long as the 99.
MRNA's August downside reversal from a new all-time high (ATH) at 498.60 (8/10/21) to 349.00 (8/16/21) was just the first shot over the bow of a larger-developing corrective pattern and period.
Thus warned Mike Paulenoff to our members on the afternoon of August 16th, when, with MRNA trading at 363.
This past Monday, with Nike (NKE) poised to report earnings later in the week, Mike Paulenoff told MPTrader members that "NKE is vulnerable to a press into the 140-143 target zone either ahead of, or in reaction to, the earnings news."
NKE was trading at 161.75 at the time, and by the week's end the stock was 149.59, having hit a low of 148.
Back on August 18th, nearly two weeks ahead of ZM's (Zoom Video Communications) earnings report, Mike Paulenoff cautioned MPTrader members about the stock.
Mike wrote: "The price structure, which has pressed relentlessly lower (15%) since its 8/05 rally high at 404.35, is probing -- and trading below -- its 100 DMA, now at 345.67, and is considerably beneath its 200 DMA, now down-sloping at 367.20.
In our Top Call article a month ago, we told you about how Mike Paulenoff called AAPL's upside continuation, with the expectation that the stock could extend a little higher before upside exhaustion.
AAPL, indeed, went on to stair-step higher to reach a high of 157.26 high last week, overshooting the upper boundary of Mike's 153-156 projected high-zone by just 0.8%. It then proceeded to initiate the expected bout of weakness that accelerated to the downside this past Friday.
