Nike Stock Struggles Ahead of Q4 Earnings Release: Can it “Ride Out” the Bearish Trend? – Nike (NYSE:NKE)

Nike NKE The company is scheduled to report fourth-quarter results on Thursday. Wall Street is expecting EPS of 7 cents on revenue of $12 billion when the company reports them after the market closes.

The stock has fallen 15.9% over the past year and is down 11.8% since the beginning of the year.

Let’s take a look at what the chart for Nike stock shows and how the stock’s price currently lines up with Wall Street expectations.

Nike stock technical settings ahead of fourth-quarter earnings release

Nike shares are in a strong bearish trend, as evidenced by the stock trading below its key exponential moving average.

Charts: Benzinga Pro

The current share price of $94.75 is below the 5-day, 20-day, and 50-day exponential moving averages, indicating significant selling pressure and the risk of further bearish market.

Key technical indicators support this outlook.

• 8-Day SMANike’s stock price of $94.75 is below its eight-day simple moving average (SMA) of $95.32, indicating a bearish market.
• 20-Day SMA: The stock is priced at $94.75 and its 20-day SMA is $94.89, indicating a bearish trend.
• 50-Day SMAInterestingly, the 50-day SMA is $93.74, slightly lower than the current price, suggesting a bullish trend in the short-term context.
• 200-day SMANike’s shares are trading well below its 200-day SMA of $100.34, reinforcing a long-term bearish signal.

Other technical indicators also support a bearish stance.

Charts: Benzinga Pro

• MACD: The MACD indicator is suggesting potential bullishness at 0.59, but it is overshadowed by other bearish signals.
• RSSIThe relative strength index (RSI) is 50.81, indicating that the stock is neither overbought nor oversold.
• Bollinger Bands: Both 20-day Bollinger Bands are currently within the bullish upper band area.

While the MACD and Bollinger Bands are signaling a possible buying opportunity, the current bearish indicators including the SMA suggest that Nike shares are under selling pressure, posing the risk of a bearish move in the future.

Related article: Nike struggles with some headwinds, but stock still trades at multiple “last achieved in 2017”: analyst

Nike analyst consensus rating

Ratings and consensus forecasts: Nike shares currently have a consensus analyst rating of “Buy” with a price target of $100.49. Analysts at Telsey, Oppenheimer, and JP Morgan who recently rated the stock have an average price target of $117, suggesting an upside of 23.63%.

NKE Price Trends: Nike shares were down 0.95% to $93.89 at press time on Wednesday.

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