For a stock that was dropping every month, that's a meaningful change in character. Two Patterns Fighting Each Other This is where it gets interesting, and I want to be honest with you about what I see. On the bearish side: the stock is still below its 200-day moving average by a wide margin. It's been making a series of lower highs (a classic descending triangle), and that's not a pattern you dismiss. On the bullish side: there's a potential double-bottom forming in the $42–$43 range. Two separate touches of nearly the same low, with buyers stepping in both times. And Bollinger Band Width has been narrowing for weeks. Price is coiling. Two patterns: one bearish, one bullish. That compression is the setup. The tiebreaker? That's where the next two letters come in. The Squeeze Is Loading When Bollinger Bands contract inside the Keltner Channels, the TTM Squeeze fires red dots. Volatility has been crushed, and the spring is coiling. And with earnings coming on June 30th (two weeks away!) there's a hard timer on this squeeze. Every earnings report is a potential squeeze trigger. The stock either confirms the turnaround or it doesn't, and volatility expands fast in either direction. But that's not a risk. That's the setup. What the Form 4s Are Telling Me Here's the part that flipped me from "interested" to paying close attention. On April 13, CEO Elliott Hill walked into the open market and bought 23,660 shares at $42.27 per share. No pre-scheduled 10b5-1 plan. An open-market discretionary purchase worth just over $1 million… near the 52-week low. Then Apple's Tim Cook, who sits on Nike's board, filed his own Form 4 the same week. Another 25,000 shares at $42.43. Nearly $1.06 million more. Together, two of the most informed people connected to this company spent over $2 million buying NKE at its lowest levels in over a decade. I've said it before and I'll say it again: I don't need a crystal ball. I need a chart and a Form 4. When the CEO buys $1 million of his own stock near a multi-year low… I listen. Oh, and one more thing. The 2026 FIFA World Cup kicks off this summer across the US, Canada, and Mexico. 48 teams. 104 matches. The biggest World Cup in history. And Nike sponsors more national teams and more elite players than any other brand on the planet. That's not a chart signal. But it's a real-world catalyst that could accelerate whatever direction this squeeze decides to fire. Your Action Plan NKE is a two-sided setup. I want to be clear about that. The trend hasn't officially reversed, and earnings on June 30th could go either way. But the squeeze is loaded, the CEO is buying, and the World Cup has already kicked off. I'm watching $47 as the first level to reclaim. Clear that with conviction on volume after earnings and this could move fast. That's what I'll be watching at the end of the month. If you want to follow along with me every single day, join Daily Profits Live, where we just closed 17 out of 20 trades as winners last week. |
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