Steelmaker Nucor (NUE) recently returned to the Green Favored Zone of the SIA S&P 500 Index Report for the first time since early 2017. The shares finished Friday in 96th place, up 18 spots on the day and up 159 spots over the last month.
A major breakout is underway in Nucor (NUE) shares this month. Over the last year, the shares have steadily been recovering, building an uptrend of higher lows and snapping downtrend resistance lines. In recent weeks, particularly since breaking out over $64.00 to a new all-time high, the pace of accumulation has accelerated.
Based on a cluster of measured moves, next potential upside resistance tests on trend appears in the $80.00 to $85.00 area. Initial support appears near the $64.00 breakout point.
After spending much of 2018 and 2019 stuck in a sideways range between $48.00 and $64.00, Nucor (NUE) shares have gone on a wild ride over the last year or so. A year ago, the shares were smashed down along with many other stocks in the COVID lockdown meltdown, then spent nearly a year steadily clawing back lost ground. This month, the shares have broken through their 2018 high near $65.00 to new multi-year highs, signaling the start of a new upleg and confirming the current upward trend of higher column lows and bullish pattern breakouts, including a series of active Double Tops and a Spread Double Top.
Next potential upside resistance appears near $83.30 and $88.40 based on horizontal counts, then $99.50 based on a vertical count which is close to the $100.00 round number. Initial support appears near $65.65 based on a 3-box reversal.
With its bullish SMAX score increasing to 9, NUE is exhibiting near-term strength against the asset classes.
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