Don't Run Against Nike's Trend: $117 Price Target (22% Upside)

Shares of Nike have been on a tear for what seems like forever. The stock is in a well defined rising channel that is more than 35 years old. This 8 to 80 stock (h/t @Howardlindzon) has momentum behind it, so why fight it? Applying fibonacci extensions from the high in 2015 and the low of 2016 generate a price objective of $117, or the 423.6% extension. This represents potential upside of 22% from current levels.


Looking at Nike shorter term, the stock just broke out of an ascending triangle. This high probability technical pattern generates a measured move price objective of $102, or potential upside of 6.5% from today's levels of $95.79.


To top it off, Goldman Sachs upgraded Nike to conviction list buy this morning, citing strong brand momentum and improving earnings power. The combination of strong fundamentals and strong technicals creates a higher probability trade. Don't run against Nike...at least for now.

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