NUE runs into sellers again around 56.65
Nucor Corporation (NUE) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, NUE ended the week 5.13% higher at 56.59 after edging higher $0.10 (0.18%) today on low volume, slightly outperforming the S&P 500 (-0.01%). Today's close at 56.59 marks the highest recorded closing price since December 10, 2018. Trading up to $0.44 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on December 27, 2018, NUE actually lost -1.07% on the following trading day. Closing above Thursday's high at 56.51, the market confirmed its breakout through the previous session high after trading up to $0.14 above it intraday.
Daily Candlestick Chart (NUE as at Jan 11, 2019):
Friday's trading range has been $0.90 (1.6%), that's far below the last trading month's daily average range of $1.76. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for NUE.
Prices are trading close to the key technical resistance level at 57.05 (R1). After having been unable to move above 56.51 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 56.65.
Though Nucor is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "4 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Nucor. Out of 81 times, NUE closed lower 55.56% of the time on the next trading day after the market condition occurred.