Nike is stumbling into earnings Thursday.
The athletic apparel stock is down more than 1 percent, adding to heavy losses over the past several months. It's tracking for a nearly 20 percent loss for the quarter, what would be its worst performance since 2008.
Bill Baruch, president of Blue Line Futures, says Nike could have further to fall.
"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.
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.
"Even if they have a good report this afternoon I would imagine that the broader market takes this to a minimum lower to $63 or so," added Baruch.
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.
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