Score 7.3 (out of 10): NIKE INC -CL B sets up for +11% rally in 3 months

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What’s Going On Here?

NIKE INC –CL is teaming up with Roblox to create a virtual world, including buildings, fields and arenas for players to compete in mini-games, called Nikeland. Users will be able to dress up their avatars in Nike-branded sneakers and apparel. Nikeland will be free for now, but could be a place to try out new products and gauge consumers’ interests.

Why Now?

NIKE INC -CL B has triggered a new technical analysis ‘buy the dip’ signal. During similar occasions, NIKE INC – CL B shares had a median return of +11%, over the following 3 months – based on 10 historical occasions with 7 of those showing positive returns (70%). This buy signal for NIKE INC -CL B received a high score of 7.3 (out of 10). This insight was generated on 2021-September-3 with last price of 171.35.

What’s This Company About?

NIKE INC -CL B is in the Athletic Footwear business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth 4.3% more (average). Ticker symbol: NKE US.

What’s My Risk / Reward and Time Horizon?

We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 190.28 (+11%) has been reached. Based on NIKE INC -CL B’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 163.05 (last price at 171.35), which is equivalent to a -4.8% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

1.7% (August-2021), 26.5% (May-2021), -5.8% (January-2021), 20.7% (September-2020), 28.7% (July-2020), 11.1% (April- 2020), -13.4% (January-2020), 14.1% (September-2019), 11% (July-2019), -4.5% (March-2019).

Historical Chart:

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Summary:

Name NIKE INC -CL B
ViewUp
Star (1 to 10)7.3
Target+11%
Time3 months
Hit Rate70%

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