Stock of the day: Nike

Markets rebounded yesterday but Tuesday brings us another drop, especially in Europe. This week’s calendar is very busy, so we should not be surprised that there will be significant volatility on the markets. In today’s analysis, we have an interesting buy opportunity on Nike. A buy opportunity that correlates with yesterday’s bounce on stocks, so it’s not actually certain that it will be continued today.

The buy opportunity comes from a false breakout (orange) on the symmetric triangle pattern (green). The breakout to the downside happened on Friday but on Monday, the price came back inside of this formation. Usually that’s a promising signal to buy but in this case, we should be more cautious.

We’re very low, so we should wait a bit longer in order to get more confirmation. An amazing buy signal on Nike would be triggered if the price not only comes back inside of the triangle but also breaks the down trendline (black) along with the upper line of the triangle (upper green). With all the negative sentiment around, only the price climbing above those two would be a significant sign to go long.