Nike is surging in extended trading Thursday after beating earnings and sales estimates.
Those gains bring relief to a beaten-down stock. The athletic apparel company is tracking for a nearly 20 percent loss for the quarter, what would be its worst performance since 2008.
Its charts suggest it is not yet in the clear, says Bill Baruch, president of Blue Line Futures.
"The broader market is seeing a lot of pressure and I don't see why Nike won't see that pressure either," Baruch said on CNBC's "Trading Nation" on Thursday before Nike reported.
Nike shares have fallen into a bear market, having dropped 21 percent from its September record. By comparison, the S&P 500 has fallen 16 percent from its own September highs.
"You have a lot of technicals falling apart here," said Baruch. "You have a 50 percent retracement the market is pushing through right now and then you also have the late 2015 peak that aligns with that 50 percent retracement. We're going through that right now and that should lead to further selling."
A 50 percent retracement level sits at around $67.50 based on the distance from its high point in September to its low point in late 2016.
For investors bullish on Nike, Susquehanna market strategist Stacey Gilbert has a way to play the stock.
"For those who do want to go with this in terms of having that upside bias, I would certainly look to call spreads," said Gilbert on "Trading Nation" on Thursday, noting that high implied volatility heading into earnings means the options are expensive relative to history.
A call spread on Nike would be a bullish bet that the stock is headed higher. Susquehanna analyst Sam Poser has a 'buy' rating on Nike and a $100 price target, implying 48 percent upside.