#StockIdeas: #NKE rising wedge bearish pattern could be an opportunity to go #short


Updated March 24, 2014 ‚óŹ 920 views
#StockIdeas: #NKE rising wedge bearish pattern could be an opportunity to go #short
NKE rising wedge bearish pattern

Nike (NKE) beat estimates on top and bottom lines, posting earnings per share of $0.76 and revenue of $6.97 billion, up 13% from a year ago. Analysts had expected $0.72 and $6.69 billion, respectively. Per-share profit increased 4% from a year ago.

Nike CEO Mark Parker called the results "strong" and said the quarter is evidence that the company's strategy of focusing on the biggest opportunities for growth is working. Nike did not provide guidance for the current quarter.

The earnings beat only means profit taking for most people so expect a short term pullback. So be cautious.

Watch out if the price goes below the 50% Fibonacci level which is around $75. If it does, it could pullback as much as $72 and meet the 200 daily EMA.

 

What is the Rising Wedge Pattern?

The Rising Wedge is a bearish pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows. In contrast to symmetrical triangles, which have no definitive slope and no bullish or bearish bias, rising wedges definitely slope up and have a bearish bias.

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