Can Nike Stock Sustain Its Pre-Earnings Rally?

Nike Inc (NYSE: NKE) looks to be on the upswing, ready to topple recent pressure at its 10-day moving average, just ahead of its fourth-quarter earnings report, which is due out after the close on Thursday, June 24. The equity still has several layers of pressure to push through if it wants to maintain this recent rally, though the $127 level looks to be a solid area of support in 2021. The 20-day moving average is still acting like a rejection level on the charts, while the $138 level, which has kept a lid on shares since April, could be a point of contention going forward. 

The stock is showing strength today, brushing off a price-target cut from BTIG to $153 from $162, putting the 12-month consensus price target at $161.87 -- still a 22.5% premium to current levels. Last time we checked in on Nike stock, it was the recipient of mixed analyst attention, though overall the brokerage bunch is currently optimistic. Eighteen analysts in coverage carry a "buy" or better rating, compared to just two "hold" ratings. 

Short-term option traders have rarely been more call-biased ahead off the event. This is per Nike stock's Schaeffer's put/call open interest ratio (SOIR) of 0.63, which sits higher than just 16% of readings in its annual range.