Topalian said at the end of the day, low cost wins. That's why Nucor has been the lowest-cost steel provider. The company is not over-leveraging itself. Topalian was bullish on the most recent round of steel tariffs. He also said that we need to take a second look at our global supply chain.
Cramer said when it comes time to own a cyclical stock, Nucor will be the one to own.
We last looked at the charts of NUE back on March 18th and wrote that, "I have to ask myself if I would consider buying a stock with a yield of 5.75% and is down around the levels of 2008. Yes, but wait for the first up close." We got that "up close" the next day.
Let's check out the charts again.
In this daily bar chart of NUE, below, we can see that prices made a low around the middle of March with the movement of the broad market. Prices rallied and made a shallow pullback before closing back above the declining 50-day moving average line.
Trading volume was very heavy from late February to early April but the daily On-Balance-Volume (OBV) line has yet to bottom out and turn higher. Sellers remain more aggressive than buyers.
The Moving Average Convergence Divergence (MACD) oscillator is back to the underside of the zero line. This is an improvement but not yet a buy signal.
In this weekly bar chart of NUE, below, we can see some improvement from the middle of March. Prices have bounced but remain below the declining 40-week moving average line.
The weekly OBV line shows some improvement but is still well below its best levels. The MACD oscillator is close to a cover shorts buy signal.
In this daily Point and Figure chart of NUE, below, we can see a potential upside price target in the $51 area.
Bottom line strategy: If you bought NUE back on the March 19th up close then hold with a sell stop below $35, the recent low.