Watch These Key Nike Trading Levels Next Week

Nike Inc NKE is set to release Q3 earnings on March 22. Wall Street is predicting EPS of $0.49 on $8.20 billion in revenue. Those numbers would mean high single-digit growth from one of the best stocks in the market in recent years.

In the past decade, Nike is up nearly 500 percent. The stock’s steady climb has rarely been interrupted by pullbacks, but Nike hasn’t made a new all-time high now since December. After briefly touching $68, the stock sold off hard, dipping as low as $53.50 in February, its lowest point since September.

As the market has rebounded in recent weeks, so too has Nike. Headed into earnings, the stock now sits at around $63, toward the high end of a trading range between $54 and $67 that the stock has been for the majority of the time since June.

The company’s Q4 earnings and the stock's reaction to earnings will go a long way in telling Nike traders what to expect from the stock in coming months.

Traders that are interested in Nike can go ahead and prepare for the possible scenarios by setting Call Levels notifications at critical technical price points on the chart. Here’s a look at some levels that are worth watching going into earnings.

There are four potentially critical Call Levels indicated in the chart. Starting with the worst-case scenario for Nike shareholders, a dip below the $54 level that served as support in February would be a very bearish sign. It’s likely that a move below this level would mean a push downward to at least $48.

But more importantly, it would likely mean that Nike’s seemingly endless ascent is finally over, at least for a while.

The next important level to watch is around $60. If Nike’s stock continues to trade above this level, it looks like it will narrowly avoid its first death cross in nearly two years. Both its 50-day and 200-day simple moving averages are currently hovering between $59 and $60, a sign that the stock could find some support in this region.

The next level to watch is $64. Nike met with resistance in the $63-64 region at the beginning of February and the beginning of March, and it seems to be struggling with that level again this week. A sustained push above $64 would likely mean that the stock will continue upward to re-test its all-time highs in the $67-68 range in coming weeks.

Finally, $67 is the last level that it worth watching in the short-term. If the stock makes it this high, one of two things will happen near this critical level. Either resistance will hold and it could serve as an excellent level to short the stock or the stock will break out to new all-time highs, a strong indication that the long-term Nike bull case remains intact.

This data was gathered from the Call Levels app.

Disclosure: the author holds no position in the stocks mentioned.