NKE is brushing off news of a collaboration with Kim Kardashian's Skims
Nike Inc (NYSE:NKE) stock is down 1.2% to trade at $76.67 at last glance, brushing off news of a collaboration with celebrity Kim Kardashian's apparel brand Skims. The equity has struggled with overhead pressure at $80 since October, again failing to conquer this region after a bounce off its Feb. 7, four-year low of $68.62. Shares carry a 25.7% year-over-year deficit, and more headwinds seem to be in store, per a historically bearish signal now flashing.
Digging deeper,
Nike stock is trading near its 126-day moving average (half a year's worth of trading), which has produced bearish returns several times in the past. According to Schaeffer's Senior Quantitative Analyst Rocky White, the equity has come within striking distance of this trendline after a prolonged period above it (defined by White as 80% of the time in the past two months and eight of the last 10 trading days) six times in the past three years.
The shares were lower one month later after 67% of these signals, averaging a 7.5% loss. From its current perch, a move of similar magnitude would place NKE just above those recent lows.
An unwinding of optimism in the options pits could pressure NKE even lower. This is per the stock's 10-day call/put volume ratio of 2.39 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 72% of readings from the past year.