Short term Elliott wave view in Nike (NKE) calls the rally from June 3 low unfolding as a 5 waves impulse Elliott Wave structure. Up from June 3 low, wave 1 ended at 78.58 and wave 2 pullback ended at 77.58. Wave 3 ended at 83.06 and subdivides as another impulse structure in lesser degree. Wave 4 pullback ended at 82.08, and wave 5 ended at 84.20 which also subdivides as an impulse in lesser degree. The 5 waves move higher ended wave (A) and the stock is now correcting cycle from June 3 low in wave (B)
The correction is proposed to unfold as a zigzag Elliott Wave structure. Down from 84.2, wave A ended at 82.37 and wave B rally is in progress as 3 waves. The stock should then lower in wave C to continue correction of cycle from June 3 low. As far as the pullback stays above 76.90, expect Nike to extend higher again. Potential area where wave (B) can end is 50 – 61.8% Fibonacci retracement of wave (A). This area comes at 79.69 – 80.54 where buyers can appear for more upside. We don’t like selling the stock.