Nike Stock Running into Bull Signal

Another indicator points to a potential short-term bounce

Deputy Editor

May 18, 2023 at 3:31 PM

Nike Inc (NYSE:NKE) stock appears to be bouncing off of familiar support at the $115 level after an extended drop, up 0.5% at $117.51 at last glance. The shares could continue their path higher as well, as they've just run into a trendline with historically bullish implications.

According to Schaeffer's Senior Quantitative Analyst Rocky White, NKE is trading within one standard deviation of its 160-day moving average for the fifth time in the past three years. Nike stock was positive one month later after three out of the four of these signals, averaging a 3.1% return.

NKE May18

It's also worth noting that the security's 14-day relative strength index (RSI) of 30.6 is right on the cusp of "oversold" territory. This is typically indicative of an upcoming bounce in the short term as well.

Now looks like a good time to weigh in on NKE with options, too, per its Schaeffer's Volatility Index (SVI) of 25%, which ranks in the low 58h percentile of its 12-month range. This means options traders are pricing in low volatility expectations at the moment.

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