Plan is a long intraday bounce trade in NKE after a sharp multi-day selloff and heavy short activity. 1) Setup & price context: - Last trade ~60.01 vs prior close 57.34 (+4.7% pre/open-session pop already). - Stock is down materially over larger windows (5D -14.57%, 1M -8.69%, 3M -19.49%, 1Y -25.63%), creating a classic oversold/relief-rally backdrop. - 14‑day ATR ≈ 2.20, implying a typical daily range of ~3.7%. On a high-volume rebound day this can reasonably stretch to 4–6%. 2) Oversold technicals with room to revert: - RSI ≈ 29.9 (oversold), supporting potential for mean reversion rather than fresh breakdown. - Price has broken well below short moving averages: EMA9 ~61.97, EMA21 ~63.55, EMA50 ~65.14, and SMA10/20/50 all around 64–65. This indicates prior downtrend but also gives clear upside reference levels for a snapback. - MACD line -1.19 below signal -0.25 (bearish momentum) but histogram is heavily negative; after an earnings-related flush this often precedes a short-covering bounce once selling pressure abates. 3) Short interest dynamics (fuel for intraday squeeze): - Short interest rising: 41.57M vs 38.39M prior (+8.27%), days-to-cover ~3.21 (elevated for a mega-cap retailer). - Short volume ratio latest day ~41.36% vs 5‑day avg ~44.49%, and trending lower. That suggests shorts have been active but incremental new shorting is slowing — a setup where any intraday strength can trigger covering. 4) Fundamental/catalyst backdrop: - Earnings on 2025-12-18 were a clear beat (EPS 0.53 vs 0.38 est, revenue $12.427B vs $12.342B est), showing that the latest leg down is more about margin concerns and guidance tone than a collapse in demand. - Seeking Alpha piece highlights both the recovery momentum and margin issues, summarizing the stock as a Hold, not a broken story ("Nike: Recovery Has Momentum, But There's Also A Margin Problem (Rating Downgrade)"). That supports the idea of an overdone de‑rating rather than structural impairment. - Retail interest is elevated: a Yahoo recap notes NKE among top-discussed names on X and r/WallStreetBets ("PYPL, DJT, MU And More: 5 Stocks Investors Couldn't Stop Buzzing About This Week"). Increased attention plus oversold levels can amplify intraday moves. 5) Liquidity & volatility: - 2‑week average volume ~30.2M shares; intraday liquidity is excellent, minimizing slippage. - ATR14 ~2.20 on a $60 stock (~3.7%); coupling that with elevated social chatter and recent earnings, a 4–6% intraday swing is realistic. 6) Trade levels & risk-reward math: - Entry range: 59.80–60.30 (near current quote but allowing for small opening volatility). Use limit orders within this band. - Exit / profit target range: 62.50–63.10. * From entry_min 59.80 to exit_min 62.50 = 2.70 gain ≈ 4.5% upside. * To exit_max 63.10 = 3.30 gain ≈ 5.5% upside. These levels still sit below the EMA21 (~63.55), so we are not banking on a full trend reversal, just a reversion toward the first descending average. - Stop loss: 58.50, about 1.30 below entry_min (~‑2.2%), slightly more than half an ATR below to allow for noise but cut risk if selling resumes aggressively. - Intraday horizon: 3–6 hours post-open; no overnight hold. If price fails to hold above 59.5 in the first 60–90 minutes with weak tape, tighten or exit early. 7) Key risks: - MACD remains bearish and all major MAs are overhead; the broader downtrend is intact. The trade explicitly targets a countertrend bounce, not a swing reversal. - Sector weakness noted in the Yahoo "Consumer Stocks Decline" update could cap the move if the consumer complex stays under pressure. - High short interest cuts both ways: if the open is sold hard instead of bought, downside can accelerate quickly; hence the tight stop. Overall, the combination of oversold technicals, recent earnings beat, rising but now-stabilizing short activity, and strong retail attention supports a tactical intraday bounce attempt with ~4.5–5.5% upside versus ~2.2% downside from the entry floor.

Entries (59.80–60.30) bracket the current last_trade_price 59.8535 and are feasible; stop at 58.50 is below current price and within a reasonable intraday loss. ATR14 2.2137 (~3.7% of price) supports the stated intraday swing targets (62.5–63.1). Liquidity is excellent (avg vol ~30M shares), reducing execution risk. Key risks: this is an explicit countertrend/intraday bounce against negative MACD and multi-timeframe downtrend; short interest and days-to-cover are elevated which can both fuel a bounce or accelerate downside if sellers dominate. Ensure strict intraday risk controls and be ready to cut quickly if price action does not confirm.