In his first "Executive Decision" segment of Mad Money Tuesday evening, Jim Cramer spoke to Leon Topalian, president and CEO of steelmaker Nucor (NUE) , to find out exactly what today's infrastructure bill means for our economy.
Topalian said that America hasn't had a meaningful infrastructure investment in decades, and the U.S. must invest in order to stay competitive.
The infrastructure bill is about a lot more than just roads and bridges, Topalian added, it's about investing in American manufacturing. Nucor is ready and able to provide the steel America needs.
When asked why Nucor shares trade at just six times earnings, Topalian said those shares are worth a lot more than they trade for, which is why the company is aggressively buying back stock. We reviewed the charts of NUE on Tuesday but let's look again.
In this updated daily bar chart of NUE, below, we can see Tuesday's strong rally to a new high. Prices are above the rising 50-day moving average line as well above the slower-to-react 200-day moving average line.
The daily On-Balance-Volume (OBV) line has made a new high for its move up and this helps to confirm and support the price gains. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart, below, we see a bullish picture. Prices are in an uptrend and just made a new high. The weekly OBV line is strong and tells us a bullish message as traders are being aggressive buyers. The MACD oscillator is ready for a new upside crossover and buy signal.
In this daily Point and Figure chart of NUE, below, we can see a $143 price target.
In this weekly Point and Figure chart of NUE, below, we can see a price target in the $180 area.
