With the exception of two dips into the yellow zone, most recently in May-June, steelmaker Nucor (NUE) has spent the last year in the Green Favored Zone of the SIA S&P 500 Index Report, reflecting robust economic conditions.
Nucor has been climbing up the rankings in the last month moving up 107 positions to 64th place. Yesterday, with the shares rallying 3.75% on the back of a positive earnings report, NUE moved up 10 spots. Although Nucor (NUE) shares have had their ups and downs since March of 2022, their underlying uptrend of higher lows has remained intact, and a bullish ascending triangle has been forming, indicating this as a long but common consolidation phase.
In recent weeks, the shares have been on an upswing, rallying up off of $130.00 support, retaking $150.00 and advancing on $170.00. Currently, the shares are approaching potential resistance at previous closing and intraday highs near $175.00 then $185.00. A move up through this zone would signal the start of a new upleg with potential resistance near the $200.00 round number, then $220.00 based on a pending measured move. Initial support appears at the 50-day moving average near $152.00.
A spring selloff in Nucor (NUE) shares bottomed out last month and since then, the shares have been bouncing back, completing a bullish Triple Top breakout and climbing to levels last seen in March.
Currently, Nucor is approaching resistance at its March high. A close above $180.05 would confirm that NUE’s primary uptrend has resumed with next potential resistance on trend near $191.05 based on a horizontal count, the $200.00 round number, and $223.65 based on a vertical count. Initial support appears near $156.70 based on a three-box reversal.
With a bullish SMAX score of 9, NUE is exhibiting strength against the asset classes.
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