Nike Monumental Macro TA FindingsHi guys! This is a look into Monumental MACRO developments occuring in Nike stock market structure, some of which are happening for the 1st time in history.
For this reason and in my opinion, its a very important time to keep eyes on Price action.
The aim is to briefly go over what those developments are and what it may mean for NIKE's Current market trend. Hopefully providing insights for investors.
For this analysis, we are looking at Hieken Ashi candles on the 6 month timeframe.
Note that: Our current candle will close in January 2024. So it has alot of room to change by the time the candle closes.
Ive chosen Hieken Ashi candles to provide clarity in patterns of trend that occured in Nike's History.
Our major development is that we have broken down BELOW and confirmed resistance against our MAJOR MAJOR Historical Support Trendline for all of Nike's Market History.
This is the 1st time we have ever done this.
It warrents caution as this signifies Major Trend Change, perhaps even macro trend reversal.
While we were above the Spport line, we knew that everytime we came down we would atleast test that line.
Now that we are BELOW it, we need price to find the next support.
Currently ive highlighted by a Black Support Trendline, that very support area. We've maintained support since January 2020.
This line coincides with another black line that marks Resistance.
When combining these 2 black lines, we have ourselves a Symmetrical Triangle. That is very likely to play out sooner or later.
If we are able to break above it, it may be probable for us to get back ABOVE the MAJOR SUPPORT Orange line, continuing our Uptrend.
If we break below, further declines will occur. Further supporting the idea of a Major Trend Reversal.
We are also currently at 4 Red candles in a row. If you notice previous history, 4 in a row has happened only 1 other time. July 83 to Jan 85. And also notice that the 3rd candle of the sequence indicated market bottom with the 4th candle printing a higher low.
Can that be the case for us now? Maybe but things in the past don't have to repeat.
Being inside of the symmetrical triangle, 4 red candles in a row would warrant me to NOT take any investment positions.
In my opinion, if we break out on the upside of the symmetrical triangle and preferably get back above "Orange support line", would i consider taking positions.
I think as of now however, we are at best more likely to either move in a range/ sideways or see further declines as the worst case.
Why i think this, is because of the STOCH RSI.
Notice how we are below the 20 level with a bearish cross/signal.
The last time we did this, we were in here for multiple years which led to moving in a range for many years before continuing to make all time highs.
Within range our, price dropped from the top about 67% to bottom of the range.
If we continue the previous pattern, the same is likely. Hypothetically, we can also drop 60% to $70.00 level, which is a support area.
For that to not happen we would need a BULLISH cross ABOVE the 20 level.
Also notice the RSI, we are currently at the lowest level in all of NIKE history. We are also in an RSI range that coincides with sideways or range bound action.
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DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
