Is After This 12% Dip The Time To Buy Nike?

Taking a look at the chart reveals now is not the time to be a buyer of Nike's stock, Oppenheimer's expert technical analyst Ari Wald said during a recent CNBC "Trading Nation" segment. This isn't to say there is further downside ahead but there aren't enough compelling signs to suggest there is reason for the stock to move higher. Also important to note, Nike does operate within the apparel and retail industry which as a whole is a bearish sector, Wald also stated. Related Links: Are Foot Locker And Finish Line's Problems All Nike's Fault? Here's What Investors Were Buying And Selling In August

On the one hand, Nike's stock chart shows signs of being "tactically oversold at the lower end of its trading range," he explained. But on the other hand, shares have been weaker on a relative basis. As such, the stock should have sufficient support at the $51 level and resistance at around the $60 level.

"We see more attractive opportunities elsewhere," he concluded.

Mike Binger, senior portfolio manager at Gradient Investments, agreed with Wald. He said during the "Trading Nation" segment that many athletic retailers are all undergoing negative business trends. Companies across the board are seeing their stocks getting crushed and management teams are scrambling to revise their estimates and outlooks lower.

"It's one of those stocks that's certainly not going to attract a growth investor because earnings are declining," he said in reference to Nike's stock. "It's not going to attract a value investor because it has a high multiple. It's stuck in purgatory, and it's hard to make money on a stock like that," he also said.