Nike could be headed lower — My support levels here

Nike (NKE) had a rough session yesterday, closing nearly 2% lower from Friday’s close. That move could be the start of a steeper pullback for the footwear retailer. Despite having delivered strong earnings recently, the stock has struggled to hold its ground and is down over 12% since the report earlier this month. From a broader perspective, NKE remains far from its former glory, trading more than 62% below its all-time highs set back in 2021.

Founded in 1964 as Blue Ribbon Sports and officially becoming Nike, Inc. in 1971, the company has grown into one of the world’s most recognizable brands. Headquartered in Beaverton, Oregon, Nike designs, develops, and markets athletic footwear, apparel, and equipment globally. Its iconic “Swoosh” logo and “Just Do It” slogan have become synonymous with sports performance and lifestyle innovation. With a market presence spanning over 190 countries, Nike remains a cornerstone of the athletic and retail sectors, though like many large-cap retailers, it faces ongoing challenges from shifting consumer trends and global market pressures.

Looking at the technicals, I see a clear breakdown taking place. The company recently lost support at a key upsloping trendline and is now breaking through another one with today’s move. These are signals I pay close attention to because they often mark a shift in market sentiment. As a trader, I like to prepare ahead of time by identifying potential zones of support where the stock might stabilize or bounce.

Moving forward, I have a few important levels in mind. My first level of minor support sits around $65.20, right at the gap fill area. If price action continues to weaken, the next significant level I’ll be watching is near $62.50, which aligns with the gap fill from earnings. Finally, my deepest level of support rests around $52.25 — the Liberation Day lows. That would be the area where I’d consider the stock deeply oversold and potentially due for a technical rebound. I’ve marked these price levels with the horizontal blue lines on the chart below.

Before taking any trade, I always remind myself of one thing: risk management comes first. No matter how strong a setup may look, managing downside exposure is the key to staying consistent over the long run.