As Nike actions continue to go up, is it a good time to buy?

• Nike’s shares win despite the fall of the market.
• Operators expect Vietnam officials to negotiate a good agreement on tariffs.
• The 90 -day tariff relief ends at the beginning of July.
• Nike has exceeded the 50 -day SMA and could rebound around $ 74.

Nike (NKE) He is seeing an increase in the price of his shares against the slight fall of the market on Tuesday, so some operators could be interested in how the King of the US sneakers will behave. The shares of NKE have synthered their single mobile average (SMA) of 50 days in the last sessions for the first time since March 11, and one wonders if the floor has already been established.

Nike shares rise just below 1% to $ 62.56 while the stock market ends a day with little volume.

The market in general is taking a respite after the long bullish trend that has been observed since April 9. The industrial average Dow Jones (Djia), which includes Nike, has fallen 0.25% at the time of writing these lines. While the S&P 500 and the Nasdaq Composite are both approximately 40 lower basic points.

News about Nike’s actions

Nike dismissed some of his technology employees on Tuesday, announcing that he would redistribute part of his technological workflow to subcontracted workers. Under the CEO Elliott Hill, the company has hired new executives for its strategy, human resources and sports marketing divisions.

Some traders are noticing that Nike will benefit from the acquisition of Foot Locker (FL) by Dick’s Sporting Goods (DKS).

“As the NKE CEO, Elliott Hill, strengthens an already robust relationship with DKS, this consolidation could improve the retail presence and consistency of the NKE brand,” wrote Jeffries, Randal Konik, in a client note.

Konik said Nike is the leading footwear brand both in Dick’s and Foot Locker, so his property of both should lead to a greater retail approach in Nike.

Konik wrote more than a week ago that Nike was one of the main beneficiaries of the agreement between the US and China to reduce tariffs. Nike only produces about 15% of its products in China.

However, many analysts think that this reduction in tariff risk points to better probabilities of a good agreement for Vietnam. Nike produces the greatest amount of its products in Vietnam compared to all other countries, and the Trump administration originally imposed a 46% tariff on Vietnam products before reducing it to 10%, such as most other countries.

The Vietnam Government has been active in reaching an agreement with the Trump administration, and many expect the country to achieve a good agreement before the 90 -day pause ends at the tariff rate in early July.

Nike’s actions prognosis

Nike’s shares have exceeded the 50 -day SMA in recent sessions. This gives him the impulse to make an attempt towards the higher trend line of the price channel in which he has been operating mainly since the late 2023. Testing the upper part of the channel would put the shares of NKE about $ 74 or more, which adds a gain close to 20%.

If the market falls or if the Vietnam Tariff Agreement with the administration leads by Donald Trump is not successful, Nike shares are expected to return to the support of early April about $ 52.50.

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