NIKE Inc. stock has been trading in a range between 80.30 and 70.00 since December 2013, without going to a new high or a new low. There is one Elliott Wave pattern, which comes into mind, when we see this type of consolidating price action – the triangle. Triangles precede the final movement of one larger sequence. In this case we think it is in the wave (4) position. On the chart below you will see what we are talking about.
If NIKE is really forming a triangle, then we should expect wave “e” down to reach the area around 73-72, thus finishing the whole wave (4) corrective pattern. Then prices could start rising again in wave (5), which is supposed to be the final move higher before the trend reverses to the downside.
