Batman and Nike

Ok this is not the same dynamic duo that you grew up with. But Robin vs Nike, which one really makes a better story. Isn’t it a better story line if Batman is with Nike, the Goddess of Victory? What a missed opportunity. I bring this up because those two are working together now, don’t tell Robin, in the chart of Nike, $NKE. Take a look. The Pattern requires a retrace to point B of 50% of the


XA move and this is a little longer but aside from that the BC pullback fits well within the 38.2-88.6% range. The Potential Reversal Zone (PRZ) for Point D is very close between 53.71 and 55.10. What does all this mean? Well a move above 55.10 and then a Terminal Price Bar move back below 53.71 signals a massive reversal with a target of at least 47.77, a 61.8% retracement of the entire range. A continuation above 55.10 negates all this. But look at the supporting cast. As it nears this PRZ the Relative Strength Index (RSI) is starting to level and turn lower with a Moving Average Convergence Divergence indicator (MACD) that is about to cross to negative. These support a move lower is they follow through. And the accumulation/distribution is rolling over as well. Time for caution or at least tightened stops if you are long this stock.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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