No significant change since April, caution ahead of earnings tomorrow

Nike is expected to report earnings tomorrow, its stock price has been rangebound between $88-$98 since the start of April. Perhaps the earnings call may be the new catalyst here for investors, but whether it will be a catalyst for the upside or the downside will be closely watched. Currently, the stock’s shares are floating on the market for around $93.89 a share and down almost 1% on the day. The channel drawn on the chart helps with the recent support and resistance levels to look out for going into the earnings. The primary resistance sits around $98.03, after the stock tried to move above it recently but has been rejected. Towards the downside, minor support sits at $91.85 followed by the major support located between $88.78-$90.85. We can see the RSI is heading back into a neutral position to align itself ahead of tomorrow, with the volume rather low over the past couple of days. Friday saw an influx, similar to that of on the 28^th of May when the stock went on to rally towards the $98 resistance. This suggests that some buyers may be optimistic heading into the earnings. Nike is expected to report an EPS of $0.84 on revenue of $12.89bn for the quarter.