EarningsBeats.com Digest

Published: Wed, 06/24/20

EarningsBeats.com Digest for June 24, 2020

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Nike Is The Heart And Sole Of Footwear

Nike's (NKE) earnings report is due out on Thursday and there's a lot riding on this report. During my analytical review of how various industries have performed during key time frames, footwear ($DJUSFT) has been mediocre at best. The group, as a whole, has been on the verge of breaking out vs. the S&P 500 on multiple occasions since October 2019 and NKE's quarterly earnings report could be the catalyst for such a breakout. Here's how NKE is trading with one day left before its earnings report:

Currently, it's simply range bound. Key price resistance is obvious near 105.00 as that level was tested in January 2020, then just recently revisited in early June 2020. To the downside, primary support resides near 94 and the rising 50 day SMA is currently at 93.10. I'd keep an eye on that combination of support. Back in March, NKE was leading the footwear group on a relative basis, but then struggled after earnings. Will this time be different? Over the past several weeks, NKE has been downtrending vs. its peers. The stock clearly could use a big lift from earnings and we'll all know soon enough if the numbers are strong enough to send prices above key resistance at 105.

Happy trading!

Tom Bowley

Chief Market Strategist

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