Take a look at these nike levels while the shares jump to the US China tariff agreement

The Nike (NKE) parts rose on Monday with the news that the USA and China will reduce tariffs for 90 days, while the two countries are working towards a wider trade agreement.

The development is welcomed as a welcome news for the sports clothing and equipment giants, who achieved 15% of its sales from China in its recent quarter and is based on the country as an important global supply chain hub. Analysts from Jefferies recently pointed out that large companies such as Nike could see significantly fewer costs in the course of the trade discussions, even though they have planned for higher, high import duties. Barron reported.

The Nike shares sagged up to 37% between the end of February and early April, since the tariffs could significantly increase production costs, which leads to increased pressure on the company's profit margins. However, an equity decline of 20% recovered by 20% by 20% by 20% by 20% by 20%. The share increased by more than 7% on Monday to close $ 62.58.

In the following we take a closer look at Nike's diagram and use the technical analysis to determine important price levels that are worth considering.

Rising triangular outbreak

Since Gaps is very lower at the beginning of April, Nike consolidated in an ascending triangle before it broke out over the upper trend line of the pattern in the trading session on Monday.

It is important that the move took place on Monday on an above -average volume, which indicates that the purchase conviction by larger market participants indicates the purchase of purchase convictions. In addition, the Breakout crossed the relative strength index via the neutral threshold value to signal a bullish priceim price.

Let us recognize three decisive overhead areas in Nikes Chart to observe them and also indicate an important support level that can be monitored in potential declines.

To observe decisive overhead areas

First, it is worth observing the 63 dollar level. In this area, the shares can be exposed to the 50-day moving average and a number of prices that the share went before the stock of the stock. This place also corresponds to the 38.2% fibonacci retracement level if a network is applied deep to April in February.

A crucial conclusion above this area could see that the shares increase a step to around 71 US dollars. Investors who have accumulated stocks on the last lows can search for profit support at this place near the 61.8% fibonacci retracement levels, and several prominent trogs that formed on the diagram between July and February.

Another advantage in the share can drive a change towards 79 US dollars. This location could deliver the sales pressure near a horizontal line that connects a number of corresponding trading activities on the table by the end of June last year.

To monitor the main support level

When it comes to retreat in Nike shares, it is worth keeping an eye on the most important level of 59 US dollars. After the improvement test, investors can search in the upper trend line of the rising triangle, which may flow from an area of ​​previous resistance to a region of future support.

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Until the date on which this article was written, the author has none of the above securities.