Five Star Stock Watch: Nike

Who hasn't owned a pair of Nike shoes? Nike shorts, or shirts?

Virtually everyone has owned a piece or two of Nike apparel. The name and sportswear go hand in hand. 

However, if investors purchased or owned Nike stock over the last six months they've either lost money or broke even, at best.

So, as far as the stock goes, now what?

The company: Nike, Inc.

Ticker Symbol: NKE

Sector: Consumer Goods

Industry: Apparel Footwear & Accessories

NIKE, Inc., together with its subsidiaries, engages in the design, development, marketing, and sale of athletic footwear, apparel, equipment, and accessories, as well as in the provision of services to men, women, and kids worldwide. 

Related: Five Star Stock Watch: JPMorgan

The company offers products in seven categories, including running, basketball, football, men’s training, women’s training, NIKE sportswear, and action sports Under the NIKE and Jordan brand names. It also markets products designed for kids, as well as for other athletic and recreational uses, such as baseball, cricket, golf, lacrosse, outdoor activities, football, tennis, volleyball, walking, and wrestling. The company also offers various performance equipment.

Please take a look at the one-year chart of Nike below with added notations:

Nike stock had enjoyed a nice runup from June until December. But since then, it has been quite a ride for the stock. It peaked at $80, fell to $70, went back up to $80 and now appears to be falling toward $70 again.

There is the potential for a double top pattern on the stock. A break below $70 would confirm that pattern. However, investors that are bullish on the stock might look to get in around $70, or even better, on a break above the $80 resistance.

Related: Five Star Stock Watch: Pfizer

Nike isn't set to release earnings again until June 26th, 2014.

No matter what your strategy, or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key.