NUE breaks below Thursday's low
Nucor Corporation (NUE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NUE finished the week 3.7% higher at 39.48 after losing $0.52 (-1.3%) today on low volume, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing below Thursday's low at 39.93, the share confirmed its breakout through the previous session low after trading up to $0.95 below it intraday.
Daily Candlestick Chart (NUE as at May 22, 2020):
Friday's trading range has been $1.16 (2.9%), that's below the last trading month's daily average range of $1.47. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NUE.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Nucor. Out of 308 times, NUE closed higher 50.65% 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 five trading days, showing a win rate of 51.95% with an average market move of 0.28%.