Nike shares facing the supports again – analysis – 06/05/2016

Nike shares movements closed lower on Thursday by (0.92-) points or(-1.56 %)   from the previous close facing the lower board for the bearish channel shown above with the support level 57.95 , declining after the price retested the top board for the broken bearish channel where, the price failed during the previous trades to breach 57.95 level, which represents the start of the rising movement from 57.95 to 65.42, to rise trading around the top board for the mentioned channel and traded around 59.50 level, which consider the second positive signal for an upcoming bullish wave, as the price during the previous trades tried to form a reversing head and shoulders pattern for the previous bearish trades for the medium terms; which failed by retesting again 57.95 during the current trades, also it is noticed the price formation for a short bearish channel that supports the price decline.

The current signals is for the bearish movement from the current resistance to target the support level 57.95 to retest it, which requires the stability of the current resistance 59.50, as if the price held above this level it will indeed breach the bearish channel top board, which will lead to a bullish movement that will target the next resistance at 60.50 then 61.20.