Earlier this month, steelmaker Nucor (NUE) returned to the Green Favored Zone of the SIA S&P 500 Index Report from a January dip down into the red zone. Since then, the shares have gained 13.2%. Yesterday, they finished in 23rd position up 11 spots on the day and up 310 places in the last month.
For the last six months, Nucor (NUE) shares have been trending sideways between $88.00 and $128.00, consolidating gains made in a previous advance up from near $45.00. Last month, Nucor successfully retested the bottom of this zone and since then, it has been on the rebound. Last week, the shares successfully tested support at their 50-day moving average near $111.75 as support then rallied up off of it to a new all-time high, blasting through the top of its previous range on Friday on increased volume, a sign of renewed interest.
Initial upside resistance may emerge near the $150.00 round number, followed by $168.00 based on a measured move. Initial support moves up toward the $125.00 round number from the 50-day average.
A major breakout is underway in Nucor (NUE) shares. Between February and August of 2021, the shares staged a major bullish High Pole advance then spend six months consolidating their gains in a higher range. A downswing last month ended in a Bear Trap where a bearish spread triple bottom breakdown failed after only one row and the shares then quickly reversed upward. Since then, the shares have been steadily climbing, reversing their prior losses, completing a bullish Double Top breakout and breaking out to a new all-time high.
Vertical and horizontal counts suggest potential upside resistance near $142.40, $160.40 and $173.60 on trend, plus the $150.00 round number. Initial support appears near $119.15 based on a common 3-box reversal.
With a perfect SMAX score of 10, NUE is exhibiting strength across 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.