NUE breaks back below 50-day moving average
Nucor Corporation (NUE) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NUE finished the month 1.3% higher at 41.95 after losing $0.75 (-1.76%) today, significantly underperforming the S&P 500 (0.77%). Closing below Thursday's low at 42.21, the market confirmed its breakout through the previous session low after trading up to $0.58 below it intraday.
Daily Candlestick Chart (NUE as at Jul 31, 2020):
Friday's trading range has been $0.91 (2.15%), that's below the last trading month's daily average range of $1.22. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NUE.
Prices are trading close to the key technical support level at 41.17 (S1). The stock closed back below the 50-day moving average at 42.07 for the first time since July 20th. When this moving average was crossed below the last time on July 17th, NUE lost -1.36% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Nucor. Out of 114 times, NUE closed higher 60.53% 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 57.02% with an average market move of 0.48%.