Watch These Nike Price Levels as Stock Soars After Earnings Report

Nike (NKE) shares soared in extending trading Thursday after the sports apparel and equipment maker posted quarterly results above Wall Street’s expectations and outlined plans to mitigate the impact from tariffs.

The company, which is working on a turnaround under CEO Elliott Hill, said it expects to take a $1 billion hit from the Trump administration’s tariffs if left at current levels, but intends to mitigate their impact over time by reducing its reliance on production in China, implementing price increases in the U.S., and reining in corporate costs.

Going into the earnings report, Nike shares had recovered 20% from their April low but remained 17% lower year to date amid concerns over significant exposure to a supply chain in China and the company’s slower-than-expected recovery effort. The stock jumped 11% to around $69 in Thursday’s after-hours session.

Below, we take a closer look at Nike’s chart and use technical analysis to identify important price levels worth watching out for.

50-Day Moving Average Provides Support

After bottoming in early April, Nike shares trended higher within a rising wedge before breaking down from the pattern earlier this month.

However, the stock has since stabilized, finding buying interest around the 50-day moving average (MA) in a move that has coincided with the relative strength index climbing back into bullish territory. That improving price momentum looks set to accelerate in Friday’s trading session, setting the stage for potential longer-term upside reversal.

Let’s identify three important overhead areas on Nike’s chart and also point out a support level worth monitoring during future retracements.

Important Overhead Areas to Watch

During Friday’s projected earnings-driven pop in the stock, it’s worth keeping an eye on the $71 level. This area finds a confluence of resistance from the nearby falling 200-day MA and a trendline that links several troughs on the chart between July and February. This level also corresponds with the 61.8% Fibonacci retracement level when applying a grid from the stock’s February high to April low.

A decisive close above this level could see the shares climb toward $79. The stock may encounter selling pressure in this location near the high of last June’s notable stock gap, which also closely aligns with several peaks and troughs that formed between September and February.

Further upside in the stock may power a move to $89. Investors who have accumulated shares at lower levels may seek exit points in this region near last year’s April swing low and September swing high.

Key Support Level Worth Monitoring

During retracements in the stock, investors should monitor the $59 level. Nike shares could attract buying interest in this area near this month’s low, which currently sits positioned just under the 50-day MA.

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As of the date this article was written, the author does not own any of the above securities.