Don't Ignore This Chart!

NKE Starts Running!


On the weekly Relative Rotation Graph for the DJ Industrials universe, NKE is inside the weakening quadrant following a completed rotation on the right side of the graph (Leading-Weakening-Leading). And over the last few weeks, the tail on NKE has again started to curl back up. These sort of rotations are usually seen in strong relative trends.

The big graph at the top of the article shows the weekly price graph for NKE, in combination with the relative strength line (vs. $INDU) and the RRG-Lines.

Back in October 2019, both RRG-Lines crossed above the 100-level. That was when NKE entered the leading quadrant from improving. Since then, the JdK RS-Ratio line has managed to remain above 100, indicating a relative uptrend vs the DJ Industrials index.

The green JdK RS-Momentum line has oscillated above and below 100 a few times in this period. These are the rotations, of which the last one is now visible on the small RRG chart.

On the price chart (click the image to open live version of the chart), NKE has just broken to new highs above the early 2020 peak near $105. This break happened after NKE exited from a triangle-like formation that played out during June and July.

The sideways move in relative strength since March/April has caused the RS-Momentum line to peak and fall back below the 100-level and push the stock into the weakening quadrant. We are now seeing a slight pick-up of relative strength again, which is lining up the tail on NKE for a new push into the leading quadrant.

The price chart is already looking good. What we need now is a break above resistance in relative strength and an acceleration higher to propel NKE into the leading quadrant, becoming a leading stock in the DJ Industrials index.

#StaySafe, --Julius

My regular blog is the RRG Charts blog. If you would like to receive a notification when a new article is published there, simply "Subscribe" with your email address.

Julius de Kempenaer
Senior Technical Analyst,
CreatorRelative Rotation Graphs
FounderRRG Research
Host ofSector Spotlight

Please find my handles for social media channels under the Bio below.

Feedback, comments or questions are welcome at I cannot promise to respond to each and every message, but I will certainly read them and, where reasonably possible, use the feedback and comments or answer questions.

To discuss RRG with me on S.C.A.N., tag me using the handle Julius_RRG.

RRG, Relative Rotation Graphs, JdK RS-Ratio, and JdK RS-Momentum are registered trademarks of RRG Research.

Julius de Kempenaer
About the author: is the creator of Relative Rotation Graphs™. This unique method to visualize relative strength within a universe of securities was first launched on Bloomberg professional services terminals in January of 2011 and was released on in July of 2014. After graduating from the Dutch Royal Military Academy, Julius served in the Dutch Air Force in multiple officer ranks. He retired from the military as a captain in 1990 to enter the financial industry as a portfolio manager for Equity & Law (now part of AXA Investment Managers). Learn More
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus