Nike just broke through resistance, and it means more upside, chart suggests

Trading Nation: Nike sprints higher

Nike just sprinted to all-time highs.

The stock raced as high as $95.25 on Monday, smashing past its Oct. 1 record, after Bank of America scrapped its bearish underperform rating in favor of neutral. Analysts were playing catch-up after a nearly 30% rally since the beginning of the year.

Ari Wald, head of technical analysis at Oppenheimer, says the fundamental and technical cases are strong for the Dow stock.

"Nike is supported by dual confirmation at Oppenheimer — it's fundamentally rated outperform by our analyst Brian Nagel and also screens positively in our trend work based on the slope of its 200-day moving average," Wald said Monday on CNBC's "Trading Nation."

"Speaking in terms of the chart, the recent breakout above its April peak at $90, we think that's marking a resumption of the long-term uptrend that's been in place. That breakout point is now support at $90 and it measures to $103, that's the height of the prior range projected from the breakout point," said Wald.

Nike had butted up against the $90 level throughout this year before breaking above it in late September. A move to $103 represents 8.5% upside from Monday's close of $94.88.

Oppenheimer's Brain Nagel is even more bullish on the stock. His $115 price target gives Nike 21% upside.

It's not all good news for the company, though. Nike's Chinese exposure could become trouble with tensions between the NBA and China flaring up, according to BK Asset Management's Boris Schlossberg. The NBA was iced out by several Chinese companies, including Tencent, last week after Houston Rockets general manager Daryl Morey came out in support of Hong Kong protests.

"There is a problem here in China in the sense that their messaging now is going to be in direct conflict with what I think is the Chinese messaging," Schlossberg said during the same "Trading Nation" segment. "I wonder just how tough and tight this whole conflict between the NBA, and the China Communist Party will become and whether Nike could become essentially kind of a victim of the protest that happens as a result of it."

Schlossberg adds that the stock is getting expensive after its steep run-up. He says he'd prefer a call options substitute strategy rather than owning the underlying stock outright.