Nike (NKE - Get Report) has been on fire over the past few months, rallying from a December low near $67 to almost an all-time high of ~$88 before the company reported earnings on Thursday after the close.

That's got shares in pullback mode on Friday, closing lower by about 6.6% at $82.19. Because the company has been doing so well and the stock has been trading so strong -- up more than 31% from those December lows -- growth investors and momentum traders have wanted a piece of this name.

Down noticeably on Friday, does that finally give investors a chance to get long?

Trading Nike Stock

8-month daily chart of Nike stock.
8-month daily chart of Nike stock.

Despite a strong earnings report in December, investors sold this name down without a thought as the broader market was being swept up in a nasty fourth-quarter correction. Investors eventually realized this was a mistake and began gobbling up Nike stock, leaving few buyable dips for investors over the next few months.

Now we have one, we just need to determine where Nike stock could fall to. All in all, Nike gave investors a slight earnings and revenue beat while margins improved year-over-year. However, guidance disappointed investors. Still, it's hard to be too bearish with those results and with the stock coming into the 50-day moving average. Nike stock also has support at $83.

For investors who have been waiting to get into Nike, this may be a good area to initiate a starter position in the name. Should the markets come under selling pressure or Nike stock continue to correct, a buying opportunity would arise again at $78 to $80. Here Nike would have notable prior support as well as the 200-day moving average to draw in buy-the-dip investors.

Let's not overcomplicate the situation with Nike stock. The quarter was decent and Nike is solid. Thus, it should draw in dip-buying investors. They may step in near current levels or on a slightly deeper decline. Know the levels and have a plan.

From RealMoney's Kevin Curran this morning: "We do think investors will reassess valuation and the outlook for NKE as 4Q and initial FY20 commentary signal the need to lower estimates slightly," Deutsche Bank analyst Paul Trussell recognized. "That said, we think downside risk is somewhat limited due to NKE's ability to deliver strong revenue, driven by innovative product and international expansion."

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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.