Graphic of Nike withdrawal: “It must contain $100” – Nike (NYSE:NKE)

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Tuesdays are often the busiest day for Wall Street analysts to reveal their rating changes, and today was no exception. Unfortunately for the shareholders of Nike Inc. NKE, it was a demotion from Barclays. The price action that followed this downgrade makes it the pre-market readiness action of the day.

Recent Nike Price Action: Similar to the S&P 500 Index, it was a bad week for the show. After peaking last Monday at $113.36, it retreated to end the session at $112.38. The issue was hit much harder than the index, losing $6.66 or 6% to close at $105.72 on Tuesday.

It was in the red in two of the three sessions to end the week, hitting its low for the week on Friday ($103.25) and ending the week at $104.12.

It caught a bid with the wider market on Monday after matching Friday’s low and advancing $3.09, or 2.9%, to close at $107.21. This matched the close of its rebound in Wednesday’s session.

The axe : Ahead of Tuesday’s open, Barclays analyst Adrienne Yih downgraded Nike from overweight to equal weight and lowered the price target from $125 to $110.

This was the second downgrade of the issue in the past month. The other came on August 9 from Exane BNP Paribas, which downgraded its rating on the issue from Outperformance to Neutral with a price target of $118.

PreMarket Prep’s take on Nike: When the issue was covered on the show on Tuesday, it was already trading in the red near $3 in the lower handle of $104.

Co-host Denis Dick didn’t hesitate with his technical take.

“It needs to hold $100 – you won’t see that today – but that’s the level it needs to hold.”

The author of this article alerted traders to a potential support zone ahead of $100 and a pair of two-session lows in the $103.30 area. These lows were easily broken within the first 5 minutes of the session.

NKE Price Action: After a much lower opening ($103.82 vs. $107.12), Nike tried to rally, reaching just $104.44, then resumed its decline.

The ensuing decline broke the pair’s lows in the $103.30 area, with Nike falling to $102.25. This marks the lowest level for the show since hitting a low on July 14 at $101.86.

The stock ultimately lost 4.46% on Tuesday, closing at $102.42.

The Nike discussion from Tuesday’s show can be found here:

Photo via Shutterstock.

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