SWOOOSH!!!!
Possibly going unnoticed over the past two months is the world’s
largest manufacturer of athletic footwear and apparel, Nike
(
NKE |
Quote |
Chart |
News |
PowerRating). In
perusing the chart, one finds several technical indications of rising prices in
this “old economy” stalwart. Nike has a three-month
relative strength rating of 95 and an uptending ADX of 39 from the
TradingMarkets.com Stock Scanner. The 20- and 50-day moving averages rolled over
in the middle of November, with the 20-day MA moving above the 50-day, a
harbinger of a trend reversal. There is now “daylight” being exhibited
between the lows of the uptrend and the rising 20-day MA, and several volume
spikes showing accumulation during the rise from the $45 range to $60.
Bolstering the cause for NKE are strong fundamentals as well.
Last quarter the stock posted earning of 44 cents per share and consensus
estimates have it projected to return 55 cents per share for the quarter ending
February 1. Nike’s last spike on Tuesday, January 9 took place on a dull, down
day for the overall market indices, so it is exhibiting superior relative
strength relative to stocks in general. Add all of this to a Cooper/Connors
1-2-3 pullback, and a recipe for continuing upward momentum could be brewing.