Nike Stock Jumps 3.17% on Bullish Reversal Signals and Heavy Trading Volume

NIKE (NKE) shares advanced 3.17% in the latest session, closing at $63.87 on elevated volume of 15.26 million shares. This bullish reversal followed a 1.42% decline the previous day, with price action testing the $61.88-$62.25 support zone before rebounding sharply to challenge the $64.15 resistance level.
Candlestick Theory
The June 10 bullish engulfing pattern – where the session’s green body fully consumed the prior day’s red candle – signals potential trend reversal confirmation. This occurred near the established support cluster of $61.88 (June 9 low) and $62.25 (June 10 low), indicating robust buyer defense. Immediate resistance is evident at $64.15 (June 10 high), with a secondary barrier near $63.66 (June 5 high). Sustained breach of $64.15 could trigger further upside momentum.
Moving Average Theory
NIKE trades below all key moving averages (50D: ~$65.50, 100D: ~$67.80, 200D: ~$72.30), confirming the prevailing downtrend. However, the proximity to the 50-day MA and yesterday’s strong rebound from oversold conditions suggest potential near-term mean reversion. A bullish crossover appears possible if the price reclaims the $64.50 zone, where the 50D MA currently converges with June’s consolidation resistance.
MACD & KDJ Indicators
The MACD histogram has shifted upward for three consecutive sessions, signaling waning bearish momentum as the signal line flattens near oversold territory. Concurrently, the KDJ oscillator shows %K (25) crossing above %D (20) from deeply oversold levels, supporting a short-term reversal thesis. This dual momentum inflection – occurring near multi-month lows – heightens reversal probability but requires confirmation through follow-through buying.
Bollinger Bands
Bollinger Band width contracted sharply preceding the June 10 breakout, indicating compression often preceding directional volatility. Price rebounded precisely from the lower band ($62.25) to close near the upper band ($64.15). This "squeeze resolution" breakout suggests renewed bullish momentum. Sustained closes above the midline (~$62.80) would reinforce the reversal pattern.
Volume-Price Relationship
The 3.17% surge occurred on 15.26 million shares – 31% above the 10-day average volume – validating bullish conviction. This volume surge contrasts with the distribution pattern visible during the May declines (e.g., May 21’s 4.12% drop on 17.35M shares), where high-volume down days dominated. The volume divergence during the rebound suggests accumulation near support.
Relative Strength Index (RSI)
The 14-day RSI rebounded from 38 (approaching oversold) to 49 after the rally, exiting the bearish zone but remaining neutral. While not yet overbought, the momentum recovery from near-oversold levels strengthens the reversal narrative. The indicator’s bullish divergence – where June’s higher lows in price contrasted with higher RSI lows – subtly preceded the current rebound.
Fibonacci Retracement
Applying Fibonacci to the April 10 peak ($89.13) and June 10 trough ($61.88) reveals critical levels. The 23.6% retracement ($66.00) aligns with the June 3 swing high and the 50D MA, creating a confluence resistance zone. The 38.2% level ($70.30) intersects with the 100D MA and April’s consolidation base, representing a major technical hurdle for any sustained recovery.
Confluence and Divergence
Confluence appears at $64.50-$66.00, where Bollinger Band resistance, the 50D MA, and Fibonacci 23.6% converge, creating a critical bull-bear battleground. Notable divergence exists between improving momentum oscillators (MACD/KDJ/RSI) and still-suppressive moving averages, warning of potential false breakouts without volume confirmation. The simultaneous bullish signals from candlestick patterns, volume, and oscillators near multi-month support tilt near-term probability toward continued upside, but trend reversal requires decisive clearance of $66.00.