Nike Inc. (NYSE:NKE) is limping, not sprinting, to new lows. Down 30.16% in the past year and 17.85% in just the last month, the sneaker giant finds itself at the bottom of its 52-week range at $64.95.

With technical indicators flashing red, is there any sign of a turnaround, or is this stock set to stay in the bargain bin?

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Nike Stock Stuck In A Bearish Downtrend

Nike stock, at $65.74 is stuck below every key moving average:

• Eight-day simple moving average (SMA): $69.93 (Bearish)
• 20-day SMA: $73.84 (Bearish)
• 50-day SMA: 74.36 (Bearish)
• 200-day SMA: 78.39 (Bearish)

The Moving Average Convergence Divergence (MACD) indicator sits at -2.34, further reinforcing the bearish momentum. Meanwhile, the Relative Strength Index (RSI) has dropped to 26.93, indicating that Nike stock is deep in oversold territory—potentially ripe for a short-term bounce, but still struggling overall.

Selling Pressure & A Slowing Business

The downtrend isn't just a technical issue – Nike's fundamentals aren't helping either. The company recently warned of a double-digit sales decline in its fourth fiscal quarter due to tariffs, weak consumer confidence, and a sluggish turnaround strategy.

During the critical holiday quarter, sales fell 9%, largely due to weak demand in China.

Adding to the pressure, Nike is still working through excess inventory and outdated styles, forcing markdowns that are weighing on margins. The company expects its gross margin to shrink by as much as five percentage points in the current quarter as it clears the backlog.

The Verdict: Oversold, But Not A Slam Dunk

Nike's stock is clearly in a bearish trend, weighed down by weak fundamentals and deteriorating technicals. While its RSI suggests oversold conditions that could spark a short-lived bounce, the broader downtrend remains intact.

Until the company finds its footing with stronger sales and improved margins, investors may want to lace up their running shoes and wait for a clearer buying opportunity.

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