NIKE Is Near a Key Resistance Area

Published on Wednesday, 08 August 2012 05:20 Written by TradersHuddle Wire

New York, August 8th (TradersHuddle.com) - Shares of NIKE, Inc. (NYSE:NKE) are trading very close to calculated resistance at $97.75. The stock ended the trading session at just $96.17, which is near levels that make it difficult to buy or start a position.

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 stock range is defined by its calculated support defined at $91.04 and by the resistance level at $97.75; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for NIKE. However, as the stock pulls back towards $91.04 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $97.75 then traders will get an opportunity to enter the stock as it moves to a higher range.