Investors sold shares on light volume ahead of Nike (NKE)'s quarterly earnings report being released tomorrow after the market close.
Shares had seen a “buy the rumor” rally ahead of today as investors reacted to the announcement of a new CEO on September 20. Since then, the stock is trading 9% higher and had hit “overbought” readings of its RSI indicator.
Earnings per share results have been on a winning streak for Nike over the last year, but that number has come on the back weakening revenue.
The lower revenue trend for Nike is widely seen to be the results of competitors like On Holding AG (ON).
On Holding’s shares are trading higher by more than 85% year-to-date against Nike’s losses of -17%.
Investors should expect that the stock will see additional selling pressure following any bad news from the earnings report. That said, investors are likely to be more forgiving on the stock given the arrival of the new CEO later this month.
From a short-term perspective, shares of Nike should find technical support around $82.50, the site of their August highs and 20-day moving average.
From a long-term perspective, Nike shares are in a bear market trend with their 20-month moving average trading at $100 as potential resistance.
Carnival (CCL) took a wild ride on Monday as shares dropped more than 6% during the day.
The stock closed just 0.27% lower than its opening price, but it was the short-term technicals that helped to make that happen.
Shares took off lower after the company reported their quarterly earnings results before the open.
For the quarter, Carnival beat their earnings per share target as well as revenue expectations.
It was Carnival management’s outlook that had investors selling. The company announced expected earnings of $0.05 per share compared to the analyst’s $0.07 expectations.
Looking out further, Carnival expects 2025 to be a strong year as another wave of consumers are expected to start booking for the 2025 season.
Today's selling took Carnival stock to short-term support at its 20-day moving average. The stock’s 50- and 200-day moving averages are positioned below current prices to form additional support.
The long-term outlook for the stock remains bullish, though investors should maintain a watch on the $20 level. This price has been staunch resistance dating back to 2023.
Apple (AAPL) shares rose almost 2% higher on Monday as the stock approaches a technical breakout price.
The stock saw early buying on Monday after news that Gavin Newsom – Governor of California – had vetoed a sweeping AI safety bill late Sunday.
The bill would have been one of the first to deliver regulations to the growing AI industry.
The proposed bill called for measures such as a “kill switch” for AI models as well as safety “testing” before releases and upgrades.
Newsom commented that the bill did not address key concerns of the technology companies, which had strongly opposed the bill. Those companies include Apple, Alphabet and Amazon to name a few.
Apple shares got a boost from the news and are now in position to break above a key technical price indicator.
The stock is now within striking distance of its top Bollinger Band.
Bollinger Bands are technical indicators that measure volatility and potential volatility of a stock.
A break above Apple’s top Bollinger Band – currently priced at $232 – would trigger a volatility rally in the stock. That volatility rally will likely target a fast move to $240, which would register new all-time highs for Apples stock.
From a longer-term perspective, Apple shares remain in a bull market trend with a price target of $300.
