SIACharts Logo

Commentary >

Nucor Corp. - (NUE) - August 4, 2021 

Steelmaker Nucor (NUE) has consistently been in the Green Favored Zone of the SIA S&P 500 Index Report since March, with the shares up 53.4% over that time. Yesterday, they moved up 14 spots to 60th place.

Late 2020 and the first half of the year was a strong period technically for Nucor (NUE), with the shares snapping out of a downtrend, then seeing accumulation accelerate following a breakout over $60.00. Recently, the shares entered a normal period of sideways consolidation to digest their earlier large gains with a $90.00 to $110.00 trading range emerging over the last six weeks.

Signs of accumulation resuming have started to emerge with NUE regaining its 50-day average near $98.75 and the $100.00 round number, which has reversed polarity to become a new initial support range. It would take a breakout over $110.00 to signal the start of a new upleg but should that occur, next potential upside resistance may emerge near the $125.00 round number, then a measured $130.00.

Following a big run up between February and June Nucor (NUE) shares have dropped back in a normal correction. Recent trading suggests that this pullback has ended and that accumulation has resumed. A recent bullish Triple Top breakout has called off a previous bearish Triple Bottom pattern, indicating that the trend has shifted from downward to sideways.

The shares regaining $100.00 was an encouraging sign but it would still take a move back above the previous peak near $111.35 to signal that the primary uptrend has resumed. Should that occur, a horizontal count suggests next potential resistance may appear near $121.80, followed by the $125.00 round number. Initial support appears near $101.80 based on a 3-box reversal, followed by the $100.00 round number.

With a bullish SMAX score of 9, NUE is exhibiting strength against the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

Related Posts

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.