Readers of Jim Cramer's Real Money column "Here's Who Would Bulk Up From a Big Infrastructure Bill" were reminded that steelmaker Nucor Corp. (NUE) is a favorite of his as an infrastructure stock.
Let's check out NUE's charts and indicators and see if it should be a favorite of yours as well.
In the daily bar chart of NUE, below, we can see that prices were cut in half from December to March. The shares made a partial rebound from late March into April followed by a shallow pullback. Prices continued to stair-step higher into June. NUE is trading now between the declining 200-day moving average line and the rising 50-day moving average line.
The daily On-Balance-Volume (OBV) line shows a bottoming pattern from March, which tells us that aggressive buying is making a comeback. The Moving Average Convergence Divergence (MACD) oscillator turned bullish in late April when it moved above the zero line. This oscillator looks poised to turn higher again for a fresh outright buy signal.
In this Point and Figure chart of NUE, below, we can see a potential upside price target in the $55-$56 area. A trade at $46.65 should be an upside breakout and refresh the uptrend.