Nike (NKE) shares surged Monday on news that the U.S. and China will 澳洲幸运5开奖号码历史查询:slas♛h tariffs on one another for 90 days while the two countries work toward a broader trade agreemen🎃t.

The development was good news for the sports apparel and equipment giant, which generated 15% of its revenue from China in its latest quarter and relies on the country as a major global 澳洲幸运5开奖号码历史查询:supply chain hub. Analysts at Jefferies recently pointed out that large companies such as Nike could see significantly fewer costs as trade discussions progress, despite having planned for higher hefty import duties, Barron's reported.

Nike shares slumped as much as 37% between late February and early April amid concerns that tariffs could significantly increase production costs, leading to increased pressure on the company’s 澳洲幸运5开奖号码历史查询:profit margins. However, a more optimistic trad🤡e outlook has seen the stock rebound 20% from last month’s low as of Monday’s close.ಞ The stock gained more than 7% on Monday to close at $62.58.

Below, we take a closer look at Nike’s chart and use 澳洲幸运5开奖号码历史查询:technical analysis to identify crucial price lꦫevels worth watching out for.

Ascending Triangle Breakout

Since gapping sharply lower in early April, Nike shares consolidated within an 澳洲幸运5开奖号码历史查询:ascending triangle before breaking out above the pattern’s upper 澳洲幸运5开奖号码历史查询:trendline in Monday’s trading session.

Importantly, Monday's move occurred on above-average volume, indicating buying conviction by larger market participants. Moreover, the breakout saw the 澳洲幸运5开奖号码历史查询:relative strength index cro🐻ss back above the neutral thres🌳hold to signal bullish price momentum.

Let’s identify three crucial overhead areas on Nike’s chart to watch and also point out a key 澳洲幸运5开奖号码历史查询:support level to monitor during potential retracements.

Crucial Overhead Areas to Watch

Firstly, it’s worth watching the $63 level. The shares may face overhead 澳洲幸运5开奖号码历史查询:resistance in this area near the downward sloping 澳洲幸运5开奖号码历史查询:50-day moving average and a series of prices that preceded the stock’s early-April gap. This location also matches the 38.2% 澳洲幸运5开奖号码历史查询:Fibonacci retracement level when applying a grid ﷺfrom the stock’s February 🐽high to April low.

A decisive close above this area could see the shares make a move higher to around $71. Investors who have 澳洲幸运5开奖号码历史查询:accumulated shares at recent lows may look for 澳洲幸运5开奖号码历史查询:profit-taking opportunities in this location near the 61.8% Fibonacci retracement level and several prominent troughs tha🔥t formed on the chart between July and February.

Further upside in the stock may propel a move toward $79. This location could provide selling pressure near a 澳洲幸运5开奖号码历史查询:horizontal line that links a range of corresponding tra꧑ding activity on the chart stretching back to l🐬ate June last year.

Key Support Level to Monitor

Upon retracements in Nike shares, it’s worth keeping a close eye on the key $59 level. Investors may look for 澳洲幸运5开奖号码历史查询:entry points on a retest to the ascending triangle’s upper trendline, which mayꦚ flip from an area of prior resistance to a region of future support.

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