NUE closes within prior day's range
Nucor Corporation (NUE) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
NUE ended the week -5.41% lower at 60.81 after gaining $0.35 (0.58%) today on high volume, underperforming the S&P 500 (1.42%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (NUE as at Oct 12, 2018):
Friday's trading range has been $1.63 (2.64%), that's above the last trading month's daily average range of $1.29. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NUE.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical resistance level at 61.26 (R1). After having been unable to move lower than 60.20 in the prior session, the share found buyers again around the same price level today at 60.16. The last time this happened on Tuesday, NUE actually lost -4.18% on the following trading day.
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back up towards the center of the Bollinger Bands at 63.71.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 58.74, downside momentum could accelerate should Nucor Corp. break out to new lows for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Nucor Corp.. Out of 559 times, NUE closed higher 54.20% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.64% with an average market move of 0.89%.