Nike Shares Surge on Surprise Sales Growth—Monitor These Key Stock Price Levels

Core Insights - Nike shares experienced a significant increase after reporting unexpected sales growth and exceeding earnings expectations [1][7] - The company reported a 1% revenue growth in the fiscal first quarter compared to the previous year, surpassing its earlier guidance of a mid-single-digit percentage decline [1][2] - Adjusted earnings per share were $0.49, significantly higher than the $0.26 anticipated by analysts [1] Sales Performance - Nike's sales growth was driven by strong performance in its wholesale, running, and North American segments, which compensated for weaker sales in China [2] - The company anticipates a decline in holiday season sales and now expects a $1.5 billion impact from tariffs for the current fiscal year, an increase from the previously projected $1 billion [2] Stock Performance and Technical Analysis - Prior to the earnings report, Nike shares had decreased by 8% since the beginning of the year due to concerns over tariff exposure and the execution of its turnaround strategy [3] - Following the report, the stock rose nearly 4% to around $72.50 [3] - Nike shares have been trading within a falling wedge pattern but are poised for a breakout [4][7] - The stock found buying interest near the 200-day moving average, with the relative strength index moving out of oversold territory [4] Chart Patterns and Key Levels - A golden cross occurred in mid-August when the 50-day moving average crossed above the 200-day moving average, indicating a potential new uptrend [5] - Important overhead resistance levels to monitor include $80, $90, and $98, while significant support levels are around $71 and $63 [6][7]