Score 7.7 (out of 10): NIKE sets up for +4% rally in 2 weeks

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What’s Going On Here?

Nike’s fiscal third-quarter results topped analysts’ estimates thanks to robust North America demand. But with lingering uncertainties around inflation, a war overseas and clogged supply chains.

Why Now?

NIKE INC -CL B has triggered a new technical analysis ‘rally reversal’ signal. During similar occasions, NIKE INC -CL B shares had a median return of +4%, over the following 2 weeks – based on 10 historical occasions with 9 of those showing positive returns (90%). This buy signal for NIKE INC -CL B received a high score of 7.7 (out of 10). This insight was generated on 2022-March-22 with last price of 133.09.

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 Moderate Risk. ‘Wall Street’ analysts think the stock price will be worth +24% (average). Ticker symbol: NKE US.

What’s My Risk / Reward and Time Horizon?

We found 2 weeks 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 138.42 (+4%) 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 126.19 (last price at 133.09), which is equivalent to a -5.2% 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’ under (2), etc.

Previous episodes:

6.8% (October-2021), 2.6% (May-2021), 0.9% (March-2021), 8.5% (July-2020), 5.8% (April-2020), -7.1% (February-2020), 4.3% (November-2019), 5.1% (August-2019), 2.3% (June-2019), 3.7% (April-2019).

Historical Chart:

Summary:

NameNIKE INC -CL B
ViewUp
Star (1 to 10)7.7
Target+4%
Time2 weeks
Hit Rate90%

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