NUE still stuck within tight trading range
Nucor Corporation (NUE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
NUE finished Thursday at 33.54 gaining $2.34 (7.5%), notably outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. 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 Mar 26, 2020):
Thursday's trading range has been $3.02 (9.6%), that's slightly above the last trading month's daily average range of $2.63. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NUE. Prices continued to consolidate within a tight trading range between 28.39 and 33.78 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 33.87 (R1). The market found buyers again today around 30.76 for the third trading day in a row after having found demand at 30.40 in the prior session and at 30.18 two days ago. The last time this happened on March 11th, NUE actually lost -10.33% on the following trading day.
Although the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the nearby swing high at 33.87 where further buy stops might get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Nucor. Out of 268 times, NUE closed higher 51.49% 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 52.99% with an average market move of 0.28%.