In this technical blog, we will look at the past performance of 1 hour Elliott Wave Charts of Nike ticker symbol: $NKE. In which, the rally from 25 March 2021 low is unfolding as an impulse structure. And showing an incomplete structure to the upside favoring more extension to take place. Therefore, we advised members not to sell the stock & buy the dips in 3, 7, or 11 swings at the blue box areas. We will explain the structure & forecast below:
Nike 1 Hour Elliott Wave Chart
Here’s the 1hr Elliott wave chart from the 8/15/2021 Weekend update. In which, the cycle from 20 April 2021 low ended wave (3) in a 5 wave structure at $174.38 high. Down from there, the stock made a pullback in wave (4) & was expected to take a form of an Elliott wave zigzag structure before it gets ready for the next extension higher. Therefore, our strategy remained to buy the dip towards the end of the correction looking for the next extension higher or for a 3 wave bounce minimum.
Nike 1 Hour Elliott Wave Chart
Above is the 1hr Elliott Wave Chart from the 8/24/2021 Pre-Market update. In which the stock failed lower in wave (4) pullback & managed to reach the blue box area. While the internals of the pullback unfolded as Elliott wave zigzag structure where wave A ended at $168.78 low. Wave B bounce ended at $172.40 high and wave C ended at $164.34 after reaching the blue box area. Thus offered members a short-term buying opportunity. Up from there, the stock already made a bounce higher & reached the 50% Fibonacci retracement of the decline from the peak at $169.35 level. Allowed longs to get into a risk-free position. However, a break above $174.38 high remains to be seen to confirm the next extension higher & avoid double correction lower.
Source: https://elliottwave-forecast.com/stock-market/nike-forecasting-zigzag-pullback/