Nike (NYSE: NKE) stock price has diverged from that of Adidas in the past few months. Nike’s shares are hovering near the lowest level since September 2023. It has slipped by over 26% from its highest level in 2023 and 45% from its 2022 highs.
Adidas, on the other hand, has recovered sharply in the past few months. It rose to a high of €220, its highest level since February 2022. It has risen by over 138% from its lowest level in 2022.
The two companies have been going through challenges in the past few years. Adidas faced a big challenge because of its association with Ye, formerly known as Kanye West. The end of that relationship led to big losses and high inventory build.
Recently, however, the company seems to have moved on from the crisis with Kanye. In a statement on Wednesday, the company said that its revenue rose by 4% in the first half to €5.4 billion while its gross margin rose to 51.4%. It also expects that its profits for the year will be better than anticipated.
Nike, on the other hand, published weak financial results as growth continued to moderate. Its revenues in the third quarter stood at $12.4 billion. Its gross margins increased by 150 basis points to 44.8%. These results were much lower than what analysts were expecting.
Adidas share price analysis
Turning to the weekly chart, we see that the Adidas stock price has recovered in the past few months. This recovery happened as investors priced in a recovery following last year’s woes.
The stock has jumped above the 50% Fibonacci Retracement level, which is a positive sign. Also, the Average Directional Index (ADX) has moved above 20, signaling that it has strong momentum.
Most importantly, the company has moved above the 50-week and 200-week Exponential Moving Averages (EMA). A closer look shows that the two averages are about to make a bullish crossover, which is known as a golden cross.
In most periods, a golden cross is one of the most positive signs in the market. Therefore, there is a likelihood that the stock will continue soaring as buyers target the 78.6% Fibonacci Retracement point at 278 euros, which is about 25% from the current level.
Nike stock price forecast
Nike, on the other hand, has also formed a bullish pattern, which could push it higher in the coming months. As shown above, the stock has formed a triple bottom pattern, which is shown in green. The neckline of this pattern is at $129.05, its highest point in January 2023.
Most recently, the stock has formed a double bottom at $88.33 whose neckline is at $122.56. Therefore, there is a likelihood that the stock will rebound in the coming months.
The bullish view will be invalidated if the stock retreats below the double-bottom pattern at $88.33.
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