NUE finds buyers again around 46.51
Nucor Corporation (NUE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, NUE finished Wednesday at 47.56 gaining $0.77 (1.65%), notably outperforming the S&P 500 (-0.46%). Today's close at 47.56 marks the highest recorded closing price since February 21st. Trading up to $0.48 lower after the open, Nucor managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Tuesday's high at 47.33, the share confirmed its breakout through the previous session high after trading up to $0.62 above it intraday.
Daily Candlestick Chart (NUE as at Sep 16, 2020):
Wednesday's trading range has been $1.44 (3.06%), that's far above the last trading month's daily average range of $1.02. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NUE.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar.
After trading down to 46.51 earlier during the day, the stock bounced off the key technical support level at 46.72 (S1). The failure to close below the support might increase that levels significance as support going forward. Unable to break through the key technical resistance level at 47.88 (R1), the market closed below it after spiking up to 47.95 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move lower than 46.61 in the prior session, NUE found buyers again around the same price level today at 46.51.
Crossing above the upper Bollinger Band for the first time since September 2nd, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 46.09 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on September 2nd, NUE actually lost -1.79% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Nucor. Out of 72 times, NUE closed lower 62.50% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 51.39% with an average market move of -0.51%.