Nike Stock Analysis: Double Bottom Pattern Signals Potential Rebound

Nike's share price appears to be forming a double bottom pattern on the weekly chart, a bullish indicator that could attract buyers and drive the price higher. As of now, Nike shares are trading at $75.46, with the potential double bottom highlighted by two green ovals on the chart. This setup suggests a possible re-test of key resistance levels above, making it an interesting opportunity for traders and investors.

Key Resistance Levels to Watch

Nike's price faces several resistance levels:

• $81.17 in the near term
• $85.69 as the next target
• $89-$90, aligned with the upper trendline

A decisive break above the upper trendline could indicate that Nike has finally ended its 3+ year bearish trend. Such a breakout might trigger a surge in momentum, potentially supporting the stock in the short to medium term, until investors assess the company's fundamental outlook for 2025.

Critical Support Levels

On the downside, the critical support zone lies between $69.84-$71. A drop below this range could raise concerns among investors, potentially leading to a deeper sell-off and pushing the stock price even lower.

Technical Indicators Suggest Bullish Momentum

Key technical indicators reinforce the case for a potential rebound:

1. RSI (Relative Strength Index):
   The RSI is showing a bullish divergence, suggesting medium strength as the stock price has formed an equal low instead of a lower low.

2. Stochastic Oscillator:
   The Stochastic points to oversold conditions, further supporting the possibility of a price increase in the coming weeks.

What’s Next for Nike?

A breakout above the $89-$90 resistance zone could mark the end of Nike's prolonged bearish trend and open the door to sustained momentum. However, failure to hold the critical support at $69.84-$71 could signal further weakness and heighten investor concerns.

Traders and investors should monitor both technical and fundamental factors closely as 2025 approaches. While the technical setup indicates bullish potential, fundamentals will play a key role in determining the stock's long-term trajectory.