Nike is making a double top
Nike (NKE) is making a double top pattern near $63.16 on a closing basis. The stock fell from this level on January 29, 2016. After being at the bottom at $55.04 on February 8, 2016, the stock rebounded. On February 22, 2016, it closed 3.7% above its 20-day moving average. The stock is 9.6% below its 52-week high of $67.65.
In the last one year, Nike stock has rallied 29.1%. The stock was maintaining its uptrend even after the Chinese yuan devaluation and made a new 52-week high of $67.65 in November 2015. After the Federal Reserve hiked the interest rate in December 2015, the stock entered a correction phase.
Amazon (AMZN) was at 9% below its 100-day moving average, while Home Depot (HD) was at par with its 100-day moving average as of February 29, 2016. AMZN and HD were both 4% above their respective 20-day moving averages. However, the Consumer Discretionary Select Sector SPDR ETF (XLY) was trading 3.2% below its 100-day moving average as of February 29, 2016.
Wall Street analysts’ consensus estimates
The above table shows the moving averages and analysts’ estimates for consumer discretionary sector companies. Analysts’ consensus estimates indicate a 20% average upside for the consumer discretionary sector. Over the next 12 months, Nike could see an upside of 17% from its levels on February 29, 2016.
Wall Street analysts’ estimates for other major consumer discretionary sector companies over the next 12 months are as follows:
- Amazon could see an upside of 35%.
- Home Depot could see an upside of 13%.
- Walt Disney (DIS) could rise by 14%.
- Comcast (CMCSA) could rise by 21%.
In the next part, we’ll look at the performance of the S&P 500’s (SPY) information technology stocks.