Nike Stock Surges 3.89% To $79.24 As Technical Indicators Flash Bullish Signals

Candlestick Theory
The most recent session for NIKE closed at $79.24, forming a large bullish candle (+3.89%) that breached the prior swing high of $77.59 (2025-07-03), establishing new resistance near $80. This follows a bullish engulfing pattern on 2025-07-28, confirming buyer dominance. Critical support lies at $76.27 (2025-07-25 low), aligning with the breakout point, while resistance converges at the psychological $80 level and the yearly high of $85.23 (2025-10-02).
Moving Average Theory
NIKE's price sits decisively above all key moving averages: the 50-day EMA (~$73.50), 100-day EMA (~$71.80), and 200-day EMA (~$70.20). The 50-day EMA crossed above both longer-term averages in mid-July, confirming a bullish trend reversal. The ascending slope of all three averages, coupled with the price trading above them, signals robust upward momentum and establishes dynamic support near the 50-day EMA.
MACD & KDJ Indicators
The MACD histogram shows accelerating bullish momentum, with the MACD line maintaining its position above the signal line since early July. KDJ readings are elevated, with the K and D lines above 80 and the J-line nearing 100, indicating severely overbought conditions. While this suggests near-term exhaustion risk, the strong trend implies that overbought signals may persist during powerful uptrends.
Bollinger Bands
Price action is pressing against the upper Bollinger Band ($79.20), reflecting strong bullish conviction. The bands expanded sharply after the late-June volatility squeeze, signaling renewed trend momentum. Sustained trading near the upper band typically denotes an overextended move, increasing the likelihood of a short-term pullback to the middle band (20-day SMA near $76.50) or lower band ($73.80).
Volume-Price Relationship
The breakout from the $62-$65 consolidation zone on 2025-06-27 occurred on explosive volume (117.5M shares, 15.19% gain), confirming institutional accumulation. Recent rallies (e.g., 2025-07-28’s 3.89% gain on 22.6M shares) show volume expanding on up days and contracting during minor pullbacks, validating bullish continuation. The volume profile highlights $72-$73 as a high-volume node, reinforcing support.
Relative Strength Index (RSI)
The 14-day RSI has climbed to approximately 78, deep into overbought territory (>70). While historically signaling potential reversals, RSI can remain elevated in strong trends. The current reading, however, warrants caution for near-term consolidation, especially as it coincides with the KDJ overbought signal and upper Bollinger Band proximity.
Fibonacci Retracement
Applying Fibonacci retracement to the swing low of $59.44 (2025-06-23) and high of $79.99 (2025-07-28), key levels emerge: the 23.6% retracement at $76.50 aligns with recent swing lows and the 50-day EMA; the 38.2% level at $74.50 corresponds to the July consolidation zone; and the 61.8% retracement at $71.50 aligns with the 100-day EMA and major volume-based support. These levels offer potential downside targets should profit-taking occur.
Confluence and Divergences
Confluence of bullish signals is evident: moving average alignment, MACD momentum, and volume-supported breakouts all reinforce the uptrend. Notably, the 50-day EMA ($73.50), 23.6% Fibonacci level ($76.50), and Bollinger Band midline converge, creating a high-probability support zone. However, a significant divergence exists: the overbought KDJ and RSI readings contrast with price making new highs, suggesting weakening momentum that may precede consolidation. While no reversal pattern has formed, the extreme RSI and proximity to $80 resistance increase the probability of a near-term pullback to test the $76.50-$76.27 support cluster.