Nike (NKE) - Get Report was hit hard on this morning's opening bell. The stock began the session with a 5% drop following last night's third-quarter earnings report. This is a sharp reversal from Tuesday's action when NKE reached new 2017 highs. For patient Nike bulls though, this sell off could develop as a very low-risk entry opportunity if a key support zone can minimize today's damage.

After treading water for January, NKE mounted a powerful breakout on Feb. 9. The stock finished with a 2.65% gain that day after taking out heavy resistance near its 200-day moving average. Nike extended this new rally leg for the next three weeks as it stretched the gain off the February low to 13%. The stock faded a bit earlier this month but, as earnings neared, it reached a new peak marking the fourth-straight higher monthly high. Needless to say, today's steep reversal from the bullish pre-earnings action is very damaging. 

At this morning's lows, NKE is testing the upper band of a very solid support zone. the $54.30 to $53.40 area includes the December and January highs as well as an upward sloping 200-day moving average. As shares settle in here, they have returned to the Feb. 9 breakout point. Considering the extensive damage, a hold here would be very encouraging. Patient NKE investors should keep a close eye on this support zone in the near-term. A base in this zone would provide a very low-risk entry opportunity. On the downside, a close below the $53.00 area would violate a key trendline indicating today's flush has more ground to cover.

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Long NKE