Watch These Nike Levels as Stock Jumps on US-China Tariff Agreement

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Timothy Smith

Mon, May 12, 2025, 9:12 PM 3 min read

Nike shares surged more than 7% on Monday after the U.S. and China agreed to suspend massive tariffs on one another for 90 days.
Since gapping sharply lower in early April, the stock consolidated within an ascending triangle before breaking out above the pattern’s upper trendline in Monday's trading session.
Investors should watch crucial overhead areas on Nike's chart around $63, $71 and $79, while also monitoring a key support level near $59.

Nike (NKE) shares surged Monday on news that the U.S. and China will slash tariffs on one another for 90 days while the two countries work toward a broader trade agreement.

The development comes as welcomes news for the sports apparel and equipment giant, which generated 15% of its revenue from China in its latest quarter and relies on the country as a major global supply chain hub. Analysts at Jefferies recently pointed out that large companies such as Nike could see significantly fewer costs as trade discussions progress, despite having planned for higher hefty import duties, Barron's reported.

Nike shares slumped as much as 37% between late February and early April amid concerns that tariffs could significantly increase production costs, leading to increased pressure on the company’s profit margins. However, a more optimistic trade outlook has seen the stock rebound 20% from last month’s low as of Monday’s close. The stock gained more than 7% on Monday to close at $62.58.

Below, we take a closer look at Nike’s chart and use technical analysis to identify crucial price levels worth watching out for.

Ascending Triangle Breakout

Since gapping sharply lower in early April, Nike shares consolidated within an ascending triangle before breaking out above the pattern’s upper trendline in Monday’s trading session.

Importantly, Monday's move occurred on above-average volume, indicating buying conviction by larger market participants. Moreover, the breakout saw the relative strength index cross back above the neutral threshold to signal bullish price momentum.

Let’s identify three crucial overhead areas on Nike’s chart to watch and also point out a key support level to monitor during potential retracements.

Crucial Overhead Areas to Watch

Firstly, it’s worth watching the $63 level. The shares may face overhead resistance in this area near the downward sloping 50-day moving average and a series of prices that preceded the stock’s early-April gap. This location also matches the 38.2% Fibonacci retracement level when applying a grid from the stock’s February high to April low.