In his Real Money column "This Group of Stocks Make Up the Anti-Inflation Trade" Jim Cramer refers to Nucor (NUE) as the "lowest cost and best steel company in the world" and says the name "can keep going higher."
When we last wrote about Nucor on April 26 we said that, "The charts of NUE are bullish. Pullbacks have been relatively shallow and have not allowed us to buy NUE at the price we wished. Plan B is to buy strength to $83 and higher. Our targets are $100, then $114. The $142 area is our longer-term price objective. Risk to $73 for now."
Prices have ripped higher so another review of the charts and an adjustment of our strategy is in order.
In the updated daily bar chart of NUE, below, we can see that the shares have rapidly climbed to new highs. We may have a runaway gap from the other day. Prices are firmly above the rising 50-day moving average line and still not overbought versus the rising 200-day moving average line.
The On-Balance-Volume (OBV) line has climbed to a new high to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator just turned upward to a fresh outright buy signal.