Investors in Nike (NKE) have had a challenging 2024. While the S&P 500 has risen over 20% and is near historic highs, NKE shares have dropped about 20% this year, now more than 50% below their all-time high from 2021.
The decline in Nike’s stock has been attributed to increasing competition, as highlighted in the latest quarterly report, which showed flat sales and a forecasted 10% decline in quarterly revenue.
Recent news of a leadership change—current CEO John Donahoe will retire next month, with former executive Elliott Hill taking over—sparked investor optimism and led to a more than 6% rise in shares in a single day.
However, technical analysis suggests that bullish momentum may wane due to several resistance levels, including:
- The psychological barrier of $90, previously a support level.
- The median line of a red channel established through linear regression.
- The upper boundary of a bearish gap formed on June 28.
On the bullish side, the $77.00 level has shown strong support during tests, indicating that traders may see the current price as attractive after high trading volume on June 28.
According to TipRanks, Wall Street analysts are optimistic about Nike’s future, with 15 out of 33 analysts recommending a buy and none advising a sell. The average price target is set at $92, suggesting a 7% upside over the next 12 months.
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