NIKE completes a three-year correction [Video]
![NIKE completes a three-year correction [Video]](https://editorial.fxsstatic.com/images/i/General-Stocks_2_XtraLarge.png)
Nike shares made a strong and impressive rebound last week—finally—especially considering the sharp drop that followed Trump’s tariff announcement back in April. Now that the U.S.
has reached some form of agreement with Vietnam regarding tariffs, Nike could perform much better in the weeks ahead.
From an Elliott Wave perspective, we see a major retracement cycle that may be coming to an end. On the monthly chart, the current consolidation has lasted more than 40 months—very
similar to the extended correction we saw between 1997 and 2020, which eventually led to a significant low. So I am wondering if we may have just completed a large wave four correction.
I really like the outlook for more upside here, especially as the weekly chart shows a breakout attempt from an ending diagonal—typically a strong reversal pattern that signals bottom
formation. If the stock pushes higher toward the 83 area or even the channel resistance near 89, it would be worth watching for a pullback. That retracement could potentially form the
right shoulder of a larger Head and Shoulders bottom pattern—but this setup may take time to fully develop.
Highlights:
Direction: Up (pending breakout).
Support: 60/47.
Resistance: 89.
NIKE Monthly + Weekly Chart
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Author
Gregor Horvat
Wavetraders
Experience Grega is based in Slovenia and has been in the Forex market since 2003.
