NKE is worth watching for an entry point based on RSI and volume

22 Tem

My Trading Strategy is very basic, a classic K.I.S.S. Philosophy. Using StochRSI, a 5 year chart for historical data and a YTD chart for current data. I look for oversold discounted companies. Nike had a ton of negative press, blah earnings and the stock price got clipped after they reported. To me, this fits my strategy to a tee, and patience and paying attention to RSI particularly will serve me well.
Today, NKE price had the first of 3 bullish price moves. I’d prefer to see the RSI on both K&D be above 35 before trying to make an early move however in this case, RSI rose well above 35 but the stock price did not follow. I opted to wait and see if buying volume would continue.
My trades are typically for 3-10 days and my exits vary by stock performance, market conditions etc.

1 Ağu

Not

As I continue to watch the price action, my initial thoughts were on 7/23 if the price were to finish higher than the previous 2 days, I might be onto something although the RSI was higher than I was looking for- that price actually failed. From 7/25 to 7/31 the price action is what I'm looking for, I've also noticed a channel starting to develop between $72+- and $75+- which also suits me fine for weekly swing potential. My hunch at this point in the game with NKE is a channel becomes more prevalent until a few weeks before next earnings. For those of you that need entry/exit points- BUY at $71- SHORT at $76. Crossing RSI should have some weight in these moves.