Nike (NKE - Get Report) stock hit its session lows in midday trading, but ended up closing higher by 35 basis points, at $83.95. 

The decline comes on the back of a disappointing fourth-quarter report where profit came up short of expectations. Earnings of 62 cents per share missed analysts' estimates by 4 cents per share and sank 10.1% year-over-year.

Revenue rose 4% year-over-year to $10.18 billion, beating estimates by $30 million. However, sales grew 10% on a constant currency basis, highlighting strength in the underlying business yet underscoring the windy macro environment.

It's the first time Nike has missed an earnings or revenue estimate in almost seven years. But despite the slight disappointment, investors aren't running for cover. The stock even pushed higher at one point on Friday, but failed to hold onto its gains.

In fact, Friday's action suggests further losses could be on the way. But if past performance is any indication, major support could curb the losses and draw in buyers.

Let's get a look at the charts.

Trading Nike Stock

A daily chart of Nike stock.
A daily chart of Nike stock.

Nike's muted reaction to the report weighed on its athletic apparel peers, with Lululemon (LULU - Get Report) and Under Armour (UA - Get Report) (UAA - Get Report)  both down slightly for most the day, but closing just in positive territory to end the week.  

With Nike's morning rally, it looked like investors might put the earnings miss behind them. Instead, shares reversed lower and are currently below both the 20-day and 50-day moving averages.

That doesn't bode well for short-term momentum, unless of course, NKE stock can reclaim these marks in the next few sessions. Worth noting is that news over the weekend can drive the share price in the short term, given that President Trump is meeting with President Xi.

But short of a big headline-driven move, Nike stock setup is relatively simple: Either the stock rallies and reclaims the 20-day and the 50-day moving averages or it continues to pullback.

If it's the former and shares reverse higher, look to see if Nike stock can take out Friday's high and push through downtrend resistance (blue line).

If it's the latter and shares pull back, it's vital that the $80 to $81 area holds as support. $81 has proven to be a key mark over the past 12 months, while the 38.2% retracement for the one-year range rests just below, near $80.75. Finally, the 200-day is at $80.34.

Below $80 and NKE stock may decline to the 50% retracement near $78.

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This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.