Nucor Corp. - (NUE) - September 21, 2021
With metals stocks coming under pressure yesterday as commodity prices fell, steelmaker Nucor (NUE) tumbled out of the green zone in the SIA S&P 500 Index Report and into the Yellow Neutral Zone for the first time since March. Yesterday the shares finished in 178th place, down 135 spots on the day, and down 177 spots in the last month.
Since peaking back in August, Nucor (NUE) shares have been under distribution, steadily retreating and forming a falling channel of lower highs and lower lows. In the last two days, selling pressure has increased significantly with the shares gapping downward, falling below $100.00, taking out their 50-day average and snapping an uptrend line all on a big spike in volumes.
Next potential downside support appears in the $88.00-$90.00 area near the July low. Initial resistance falls toward the $100.00 round number.
A strong two high pole advance in Nucor (NUE) peaked back in August. Since then, the shares have been steadily retreating, including a 7.6% decline yesterday. With the shares giving back more than 50% of their previous high pole, a bearish High Pole Warning signal has now appeared.
Initial downside support appears at the July low near $89.30. A breakdown there would complete a bearish double bottom pattern and confirm the start of a new downtrend. Should that occur, horizontal counts suggest next potential support may appear near $87.50 then $73.25. Initial rebound resistance appears near $104.60 based on a 3-box reversal.
With a bearish SMAX score of 5, NUE is exhibiting weakness against the asset classes.
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