Nike (NKE) shares dropped more than 12% in extended trading on Thursday after the athletic apparel and equipment maker ಞ澳洲幸运5开奖号码历史查询:reported weaker-than-expected quarterly rꩲevenue and cut its sales outlook.

Below we take a closer look at the Nike chart and use 澳洲幸运5开奖号码历史查询:technical analysis to point out several levels worth monitoring.

Breakdown from Rising Wedge Pattern

Nike shares trended sharply lower between late February and early April after the 50-day 澳洲幸运5开奖号码历史查询:moving average (MA) crossed below the 200-day MA to form a bearish 澳洲幸运5开奖号码历史查询:death cross signal. Since that time, the stock has oscillated within a 澳洲幸运5开奖号码历史查询:rising wedge, a chart pattern that indicates a continuation of the cu💦rrent longer-term downtrend. 

To be sure, the stock sits poised to break down from the pattern Friday following the company’s disappointing results. It’s also worth noting that 澳洲幸运5开奖号码历史查询:trading volume has increased over the past week, suggesting that 澳洲幸运5开奖号码历史查询:institutional investors have been rebalancing their 澳洲幸运5开奖号码历史查询:portfolios before th🎀e earnings report and end of the quarter.

Monitor These Levels Amid Further Weakness

Investors can use the measur🎃ed move technique to project where Nike shares may be headed next if they continue to decline post-earnings. 

To do this, we calculate the distance in dollars of the most recent downtrend preceding the rising wedge and deduct that amount from the pattern’s lower 澳洲幸运5开奖号码历史查询:trendline. In this case, we subtract $18 from $93 to arrive at a 澳洲幸运5开奖号码历史查询:price target of $75. 

This provides a possible area on the chart where bargain hunter investors may look for buying opportunities, particularly if other technical indicators are flashing oversold conditions at the same time the stock trades near this level. Amid further weakness, it’s also worth monitoring if a prominent 澳洲幸运5开奖号码历史查询:swing low that formed on the chart in October 2022 provides support around $82.

Nike s🎃hares fell 12.4% to $82.54 in after-hours trading.

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As of the date this article was written, the author does not own any of the above securities.