Ichimoku Cloud and Resistance Breach

As you can see, Nike, Inc. (NYSE; ticker: NKE) has broadly exhibited a downward bias since the beginning of 2022. The tide may be shifting, however. The stock recently made its way north of the Ichimoku Cloud, composed of the Leading Span B (light orange at US$84.40) and the Leading Span A (light green at US$81.01). Assuming price action remains above the Ichimoku Cloud’s boundary, this will be viewed as a bullish signal. Adding to this bullish picture, the Conversion Line (blue at US$83.94) crossed above the Base Line (red at US$78.09).

Alongside the breakout above the Ichimoku Cloud, the stock also drilled through resistance at US$84.61, which is close to being retested as support. Support-turned-possible resistance is up ahead at US$88.87 (a level with a history as far back as November 2022) and could eventually pose a problem for breakout buyers above the Ichimoku Cloud.

Price Direction

In light of price making its way above the Ichimoku Cloud and resistance around US$84.60ish, this could propel the stock towards resistance at US$88.87. Interestingly, if you drill down to the M15 timeframe, you will note that following the breakout above daily resistance, the local correction has so far formed an AB=CD bullish formation that could complete at US$84.60.

DISCLAIMER:

The information contained in this material is intended for general advice only. It does not take into account your investment objectives, financial situation or particular needs. FP Markets has made every effort to ensure the accuracy of the information as at the date of publication. FP Markets does not give any warranty or representation as to the material. Examples included in this material are for illustrative purposes only. To the extent permitted by law, FP Markets and its employees shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided in or omitted from this material. Features of the FP Markets products including applicable fees and charges are outlined in the Product Disclosure Statements available from FP Markets website, www.fpmarkets.com and should be considered before deciding to deal in those products. Derivatives can be risky; losses can exceed your initial payment. FP Markets recommends that you seek independent advice. First Prudential Markets Pty Ltd trading as FP Markets ABN 16 112 600 281, Australian Financial Services License Number 286354.