During Monday's "Lightning Round" segment of Mad Money, one caller asked Jim Cramer about Nucor (NUE) : "This is one of the best performing stocks in the index. Stick with it," replied Cramer about to the steel company.
We looked at NUE on May 6 and wrote that "The rapid rally in NUE makes it look like a cloud or tech name. (There is a lot of money looking for good uptrends and NUE is one of them.) Prices are quickly approaching our $100 price target. Now you can add the $130 area and maybe the $186 area after the $114 target. Raise stop protection from $73 to $80."
Let's check on the charts again.
In this updated daily bar chart of NUE, below, we can see that prices have moved closer to our $114 target after passing the round number of $100. Prices are above the rising 50-day moving average line and are approaching being overbought when compared to the rising 200-day moving average line which intersects down around $60. A push up to $120 on NUE would make it twice the level of the 200-day line and would be considered overbought.
The On-Balance-Volume (OBV) line has risen sharply since early February to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has crossed to a take profit sell signal.
In this weekly Japanese candlestick chart of NUE, below, we do not find a top reversal pattern. There is a long-legged doji pattern but there is no confirmation yet. Prices are trading above the rising 40-week moving average line. The weekly OBV line is bullish and rising and the MACD oscillator is also bullish.
In this daily Point and Figure chart of NUE, below, we can see a potential upside price target in the $158 area.
Bottom line strategy: Our targets are now $114, $130, $158 and maybe $186. Raise sell stops to $93 from $80.
Join us on May 26th for Real Talk, a special Real Money webinar featuring reopening portfolio picks from Chris Versace, Stephen "Sarge" Guilfoyle and Ed Ponsi. Sign up for the webinar to see them discuss and debate their portfolios.
