Stock of the day: Nike

Today’s focus is on Nike, which started February under pressure, experiencing a significant drop below key horizontal support at $71 (marked in blue). However, this breakout turned out to be false, as the price quickly rebounded above the level, forming a false breakout pattern, highlighted in the red rectangle.

Now that Nike is back above the key support, sentiment has shifted positive, and the price is approaching its monthly highs. The next major resistance is the orange downtrend line, which has been limiting further gains. A daily close above this level would confirm a breakout and a strong buy signal, potentially leading to further bullish momentum.

Traders should watch for a break above the orange resistance, which would open the door for higher targets, while a rejection could lead to a short-term pullback.