NKE remains in a downtrend and weakens vs XLY; speaker expects continued weakness.

It seems that Nike cannot get out of its predicament. We usually look at short-term charts. This is a weekly chart covering 15 years. The reason for showing this is that you can see the price here in the mid-thirties; we haven't been at this level for a long time.

It has been a very bumpy road lately. Our downward trend also continues largely steadily .

Looking ahead, what we see here is that Nike is significantly weakening compared to the XLY discretionary consumer goods fund, having fallen 52.3% over the past 251 days,

Now we can see Nike heading down here. Our two defined white lines converge to form a descending wedge shape here. We recently reached those low levels of 35.16. A relative high here near 37.41 stands out as a mark that must be surpassed.

We also have a series of lows that have become highs here near the 41 level. So, it's definitely a tough chart for anyone who has been bullish on this stock lately.

We can see that the 5-day exponential moving average in dark blue is aligned with our trend line here . This comes at around 35.81. Therefore, 36 would be a breakout point based on this very short-term exponential moving average .

We will then have the monthly 21- day exponential moving average slightly above that, just below the 37 level.

We can see that the Relative Strength Index (RSI) is trending slightly upwards here, but it is still below the midline at 50. Our size profile shows that we have a node here between approximately 35.50 and 37 .

This large size at a low level often indicates that this is an important pivot point . If it is broken, it may also lead to more severe consequences . We had another node here between 40.50 and 46 with a control point at 43.50.

So , the bulk of the trading activity is kind of over here. Therefore, there may be some optimists stuck at these lower levels.

So, our weekly move for Friday is plus or minus about 7.9%, which is a big move based on these earnings, but we will focus on November, our green square here, plus or minus about 14.8% during this period.

The news hasn't been good lately, with many analysts cutting their price targets recently. Therefore, a bearish trade by buying one of the " put butterfly" on November 20 at levels 40, 35, 30, at a cost paid of 40 cents.

A bearish outlook with 50 days until expiry. The maximum loss is $40, which is the cost we paid. The maximum profit is $460. If the trade expires at the double execution price of 35 here, the breakeven point will be 30.40, while 39.60 for the downside here will be the areas where you expect the price to end.

Therefore, the scope is very narrow for this deal. But if we start to fall too far below the 30.40 level or so, this trade could turn into a loss again. Therefore, we anticipate continued weakness in this struggling stock .