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.
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.