In his first Executive Decision segment of "Mad Money" Thursday, host Jim Cramer spoke with Leon Topalian, president and CEO of steelmaker Nucor Inc. (NUE) .
Topalian said Nucor is poised to return value to shareholders. He said it has built its business to thrive even in market cycles such as this one.
When asked about the perception that Nucor is just another dirty steelmaker, Topalian responded that the company is actually the largest recycler in the country. A full 70% of its input materials are recycled, while 100% of everything it manufactures can be recycled. Topalian said Nucor constantly is improving its processes and lowering their environmental impact.
Let's check and see how environmentally friendly or investor friendly the charts are for this stock, which just received an upgrade from TheStreet's Quant Ratings.
We looked at the charts of NUE on Monday and wrote that "NUE is in an uptrend, but with price targets only in the $56-$59 area I am not really excited about going long at current levels. Buying a pullback to $46 risking below $43 with an upside of $56 plus seems like a better trade idea." Has anything changed in a few days?
In this updated daily bar chart of NUE, below, we can see that prices are still pointed up but yet to break above $50. The slopes of both the 50-day and 200-day simple moving averages are positive and pretty close to the price action. The On-Balance-Volume (OBV) line looks like it is now rolling over and transitioning from aggressive buying to aggressive selling. The trend-following Moving Average Convergence Divergence (MACD) oscillator has narrowed to the point where it could cross to the downside for a take profits sell signal.
In this weekly chart of NUE, below, we cannot discern any meaningful change from Monday. The picture on this time frame is constructive.
In this daily Point and Figure chart of NUE, below, we still have a potential price target of $59 but we still need a trade at $50.51 or higher for a breakout.
Bottom line strategy: We would continue to recommend buying a pullback to $46, risking below $43 with an upside of $56 plus as the best trade idea for NUE for now.