Steelmaker Nucor (NUE) has been bouncing around between the Green Favored Zone and the yellow zone of the SIA S&P 500 Index Report this year. Currently it is on an upswing which started in late September. Yesterday it climbed 4 spots to 24th place and it is up 23 positions in the last month.
A major breakout is underway in Nucor (NUE) shares this week. Since retesting support near $100.00 in September, the shares have been under renewed accumulation, steadily climbing in a bullish Rising Channel of higher highs and higher lows, retaking their 50-day moving average and snapping out of a downtrend along the way. This week, the shares have broken out over $142.50, completing a bullish Ascending Triangle to confirm the start of a new uptrend, with a positive gap yesterday adding icing on the cake.
The shares have now regained the $150.00 level with next potential upside resistance tests at a recent peak near $160.00, the April closing high near $175.00, and a measured $182.50. Initial support moves up toward $140.00.
Back in September, Nucor (NUE) successfully retested its July low near $102.45, holding above the $100.00 round number again, and has not looked back since. Over the last two months, NUE has steadily bounced back without even a 3-box correction, and recently completed bullish Double Top and Spread Double Top breakouts to confirm the start of a new upswing.
Initial upside resistance appears at a previous column high near $158.40, followed by $175.00 where a round number, the April peak, and both vertical and horizontal counts cluster together. Initial downside support appears near $137.90 based on a 3-box reversal.
With a perfect SMAX score of 10, NUE is exhibiting strength across the asset classes.
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