NIKE Is Near a Key Resistance Area

Published on Tuesday, 20 November 2012 05:28 Written by TradersHuddle Wire

New York, November 20th (TradersHuddle.com) - Shares of NIKE, Inc. (NYSE:NKE) are trading very close to calculated resistance at $96.74. The stock ended the trading session at just $96.32, 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 $89.65 and by the resistance level at $96.74; 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 $89.65 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $96.74 then traders will get an opportunity to enter the stock as it moves to a higher range.