Since 2020, when the RSI records a reading of 30 or lower the stock's price bounces back

Nike is now trading at 2019 levels after its shares closed at a price of $75.28 a share yesterday. A key area of support has been outlined using the channel drawn on the chart, this area ranges from $60 to $66.27. A move into this area would almost certainly see an inflow of buyers for the shorter term. Although, it is not guaranteed that the stock will sell off that low, if ever. A partial reason for this is the current reading of the RSI indicator, which is reading 30 right now. Looking at the history of the chart, since 2020 when the RSI recorded a reading of 30 or lower, buyers rushed in and the stock price jumped in the following weeks. Some rises have been short-lived but some went on to rally higher. The percentage of the potential move higher cannot be determined, only a guide can be taken using the past moves. However, it’s not even guaranteed that any bounce is set to occur and caution should remain in bearish trends. Nonetheless, a key takeaway here is that on the last five occasions when the RSI did move into the area of 30 or below, the stock did bounce higher. Nike has now become one for the watchlist.