Nike (NKE) shares surged Monday on news that the U.S. and China will 澳洲幸运5官方开꧋奖结果体彩网:slash tariffs on one another for 90 days while the two countri🐷es work toward a broader trade agreement.

The development was good news for the sports apparel and equipment giant, which generated 15% of its revenue from China in its latest quarter and relies on the country as a major global 澳洲幸运5官方开奖结果体彩网:supply chain hub. Analysts at Jefferies recently pointed out that large companies such as Nike could see significantly fewer costs as trade discussions progress, despite having planned for higher hefty import duties, Barron's reported.

Nike shares slumped as much as 37% between late February and early April amid concerns that tariffs could significantly increase production costs, leading to increased pressure on the company’s 澳洲幸运5官方开奖结果体彩网:profit margins. However, a more optimistic trade outlook has seen the stock rebound 20% from last month’s low as of Monday’s close. The stock ga🅘ined more than 7% on Monday to close at $62.58.

Below, we take a closer look at Nike’s chart and use 澳洲幸运5官方开奖结果体彩网:technical analysis to identify crucial pജrice levels worth watching out🌜 for.

Ascending Triangle Breakout

Since gapping sharply lower in early April, Nike shares consolidated within an 澳洲幸运5官方开奖结果体彩网:ascending triangle before breaking out above the pattern’s upper 澳洲幸运5官方开奖结果体彩网:trendline in Monday’s trading session.

Importantly, Monday's move occurred on above-average volume, indicating buying conviction by larger market participants. Moreover, the breakout saw the 澳洲幸运5官方开奖结果体彩网:relative strength index cross back above the neutral threshold to signalꦡ bullish price momentum.

Let’s identify three crucial overhead areas on Nike’s chart to watch and also point out a key 澳洲幸运5官方开奖结果体彩网:support level to monitor during potential retracements.

Crucial Overhead Areas to Watch

Firstly, it’s worth watching the $63 level. The shares may face overhead 澳洲幸运5官方开奖结果体彩网:resistance in this area near the downward sloping 澳洲幸运5官方开奖结果体彩网:50-day moving average and a series of prices that preceded the stock’s early-April gap. This location also matches the 38.2% 澳洲幸运5官方开奖结果体彩网:Fibonacci retracement level when applying a grid from🍌 the stock’s February high to April low.

A decisive close above this area could see the shares make a move higher to around $71. Investors who have 澳洲幸运5官方开奖结果体彩网:accumulated shares at recent lows may look for 澳洲幸运5官方开奖结果体彩网:profit-taking opportunities in thiཧs location near the 61.8% Fibonacci retracement level and several prominent troughs that formed on the chart between July and February.

Further upside in the stock may propel a move toward $79. This location could provide selling pressure near a 澳洲幸运5官方开奖结果体彩网:horizontal line that linkꦆs a range of corresponding t༺rading activity on the chart stretching back to late June last year.

Key Support Level to Monitor

Upon retracements in Nike shares, it’s worth keeping a close eye on the key $59 level. Investors may look for 澳洲幸运5官方开奖结果体彩网:entry points on a retest to the ascending triangle’s upper trendline, 🐟which may flip from an area of prior ༒resistance to a region of future support.

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