Ian Cooper’s Stock Pick of the Week

Chart of Day: Nike (NKE) 

We’ve seen some great winners over the last few weeks.

Just a couple weeks ago, we highlighted Intel (INTC), as a buy opportunity at $44.04. Today, the tech stock is up to $50.88, and still running.

We also highlighted General Motors (GM) as it traded at $28.89.  It’s now up to $36.13. We even highlighted Generac Holdings (GNRC) at $109.62 before it ran to $130

If you were in those trades we’d love to hear how you’re doing.

As for new trade ideas, take a look at Nike (NKE). 

Over the last few days, NKE gapped from $122.50 to $108.02 and appears to have caught strong support dating back to late November. Also, if you pull up a one-year chart, you can see NKE is now over-extended at its lower Bollinger Band (2,20), on RSI, Full Stochastics, and Williams’ %R. From here, with patience, we’d like to see it refill its gap around $122.50.

While NKE slipped on earnings and guidance, it also appears most of the negativity has been priced into the stock. Even Goldman Sachs still says NKE is a buy here.

In fact, according to the firm, “Margins came in better than anticipated (+170bps compared to the guide of +100bps), while the analyst is also encouraged by NKE’s solid results during the early holiday season, as management highlighted nearly 10% growth and robust results during major holiday moments (Black Friday/Singles Day),” as highlighted by TipRanks.com.

Goldman now has a $135 price target, with a buy rating.

Ian Cooper is an experienced trader who uses a combination of technical, fundamental, and news analysis to help individual investors grow their wealth. Ian’s Premium Options Strategies

 

     
FFR Trading Team