NIKE, Inc. (NKE), a global company that designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories yesterday reported their fiscal third quarter 2017 financial results. Nike reported third quarter earnings of $0.68 per share which beat analyst expectations of $0.52 per share. Nike reported third quarter revenues of $8.43 billion which fell short of analyst expectations of $8.45 billion.

NIKE, Inc.  CEO’s Comments

“The power of NIKE’s diverse, global portfolio delivered another solid quarter of growth and profitability,” said Mark Parker, Chairman, President and CEO, NIKE, Inc. “To expand our leadership and ignite NIKE’s next phase of growth, we’re delivering a relentless flow of innovation through performance and style, increasing speed throughout the business and creating more direct connections with consumers leveraging digital and membership.”  Business Wire

NKE Technical Analysis

(Click on image to enlarge)

NKE opened trading yesterday at $58.78 which was up from the previous day’s trading close of $58.68. Shares closed trading yesterday at $58.01 and spiked down after market to $55.97, equivalent to a 4% decrease from the closing price. Taking a look at the daily chart we can see that the last time NKE traded below these levels we have to go all the way back to February 9th, when it traded at $55.31.

Taking a closer look at the daily chart we can see that before the spike down NKE had been in an overall upward trend dating back to December 30th, 2016 when it traded at $50.83. NKE has a float of 1.3 billion shares and traded 1.68 times the normal daily trading volume on Tuesday.

For trading purposes, I would like to see NKE open trading on Wednesday below $56.65 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap down.