NIKE Is Approaching its 200 Day Moving Average

Published on Sunday, 24 June 2012 00:36 Written by TradersHuddle Wire

New York, June 24th (TradersHuddle.com) - NIKE, Inc. (NYSE:NKE) closed the trading session at $99.40, near its 200 day moving average set at $100.77. NIKE's stock action is below this level, which makes the stock difficult to be bought, as it will face resistance as it approaches its 200 day moving average.

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.

Latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $99.36 and resistance at $109.91. Traders should closely monitor these levels, as they provide great reference points for the latest price action in NIKE.

If traders want to establish a position on NIKE, given that resistance could materialize as the stock approaches its 200 day moving average, a trade might materialize as the stock manages to break this important level. After the breakout, the 200 day moving average could be used as support going forward. However, until the break materializes, traders need to exercise patience.