Nike shares gain the most in two weeks on Tuesday, company’s revenue figures outstrip market expectations

The largest footwear producer on a global scale, Nike Inc., reported higher-than-anticipated revenue and profit during the second quarter ending on November 30th, supported by higher demand in Greater China, Western Europe and emerging economies.

Nike shares rose the most since December 7th on Tuesday, rebounding after a four-day streak of losses. The stock went up 1.85% ($0.94) to $51.79, after going up as high as $51.99, or a level not seen since December 15th ($52.04). In the week ended on December 18th the shares of the athletic apparel manufacturer lost 1.55% of their value compared to a week ago, which marked a second drop in the past six weeks. The stock has extended its advance to 3.44% so far during the current month, following three consecutive months of losses. In November, Nike shares edged down 0.22%, which marked the smallest drop since June.

Nikes sales in North America, the apparel producers largest market, were reported to have grown 3% to $3.65 billion during the second quarter ending on November 30th, while sales in Greater China surged 12% to reach $1.06 billion.

The DJIA-featured companys net income grew 7.3% to $842 million (50 cents a share) during the latest quarter from $785 million (45 cents a share) during the same quarterly period a year ago. The median forecast by analysts had pointed to a net income of 43 cents a share.

Nikes total revenue expanded 6.4% to $8.18 billion during the second quarter ending on November 30th from $7.69 billion during the same three months of 2015. The figure outstripped market consensus pointing to a revenue of $8.09 billion.

At the same time, the companys selling and administrative expenditures were reported to have shrunk 2% to $2.51 billion during the period in question.

Gross margins, on the other hand, shrank 140 basis points to 44.2%, mostly as a result of higher product costs, recent US dollar appreciation and higher off-price sales.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Nike stock are presented as follows:

R1 – $51.90
R2 – $52.02
R3 (Range Resistance – Sell) – $52.13
R4 (Long Breakout) – $52.47
R5 (Breakout Target 1) – $52.87
R6 (Breakout Target 2) – $53.06

S1 – $51.68
S2 – $51.56
S3 (Range Support – Buy) – $51.45
S4 (Short Breakout) – $51.11
S5 (Breakout Target 1) – $50.71
S6 (Breakout Target 2) – $50.52

By using the traditional method of calculation, the weekly levels of importance for Nike Inc (NKE) are presented as follows:

Central Pivot Point – $51.60
R1 – $52.54
R2 – $54.15
R3 – $55.09
R4 – $56.02

S1 – $50.00
S2 – $49.05
S3 – $47.44
S4 – $45.82