NIKE Close to Resistance

Published on Friday, 10 February 2012 05:20 Written by TradersHuddle Wire

New York, February 10th (TradersHuddle.com) - Shares of NIKE, Inc. (NYSE:NKE) are trading very close to calculated resistance at $106.66 with the current price action closing at just $105.76 placing the stock near levels that make it difficult to buy.

NIKE, Inc. (NYSE:NKE) designs, develops, and markets athletic footwear, apparel, equipment, and accessory products for men, women, and children worldwide. The Company sell its products to retail stores, through its own stores, and through a mix of independent distributors and licensees.

NIKE's current stock range is defined by current calculated support defined at $92.89 and by the resistance level at $106.66, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for NIKE, as the stock is well above support, however, as the stock pulls back towards $92.89 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $106.66 then traders will get an opportunity to enter NIKE stock by establishing a position as the stock moves to a higher range.