In today’s Super Seasonals: Trade of the Week we will look at Nike Inc (NKE).
The stock has been sold off pretty good year to date, but coming into the holiday seasons, Nike should recover and be fine. Of course we never know, but it is a super popular high demand product, and if history dictates anything we want to consider being on the bullish side through year end.
The stock has been a bit helter-skelter this year. Daily composite technicals are in a Buy. And the Analyst still rate it a Buy
Below are the seasonal snippets of Nike, they look solid.
Below is a Daily chart of Nike. If a reader is a breakout trade, this might fit the bill on how to play this, if they are bullish now. Buy a breakout above this past Friday’s high. Place stops below the 10/3 low; if it trades there it may fall even further and try to fill the gap. Just get out, or maybe try to reposition later. The current ATR (Average True Range) is $2.16, so this is roughly a 3 ATR stop. Different traders have different stops, there’s no way I can say what is best for your situation. There’s a few pivot areas that I have circled in the $114-ara, price may try to push up to that zone. (Disregard this idea, if you believe Nike pulls back and fills the gap)
If a reader is Bullish now, here is a potential Call to consider buying. Exit when the price of “stock” trades between $111-112.
If a reader is bullish now, here’s a potential Bull Call Debit spread to consider. A good general rule, exit around 70-80% of max profit.
As you likely know, there are literally dozens of solid ways to approach trading Nike Inc (NKE) with a bullish bias. The decision of how to best invest in the stock or trade the options is an individualized decision, unfortunately there is no one best way. Hopefully this information has proved worth your time. Please remember, do your homework, and fully understand the risk before trading anything.
To learn more about seasonal information on Nike Inc (NKE) and other solid seasonal opportunities click here SuperSeasonals . For other seasonal opportunities, please click on the link below to access the Super Seasonals software:
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