• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

The Pullback in Nucor Looks Like It Has Run Its Course

Let's pay a visit to the charts of the U.S.-based steelmaker.
By BRUCE KAMICH
Sep 24, 2021 | 01:13 PM EDT
Stocks quotes in this article: NUE

During Thursday's Lightning Round segment of Mad Money one caller asked about Nucor (NUE) . "Nucor is coming back. It sells at just five times earnings. Hold onto it," was the advice from Jim Cramer.

Let's pay a visit to the charts of this U.S.-based steelmaker.

In the updated daily bar chart of NUE, below, we have a learning moment. Prices have corrected to the downside in recent weeks and are trading below the 50-day moving average line. Some analysts may be turning bearish but if they just stood back and looked at the price action more and the indicators less they would see that the shares are trading above the last low in July. The pattern of higher lows and higher highs is still good -- we still have an uptrend. This condition could change but it is valid at this time.

The trading volume has been a bit heavy the past two months but the On-Balance-Volume (OBV) line has only declined modestly, in my opinion. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but narrowing.

In the weekly Japanese candlestick chart of NUE, below, we can see the past three years of price action. Here too we have another learning moment. The chart currently shows a gap to the downside. Normally this price void or gap would be considered bearish but the candle pattern shows us a lower shadow which tells us that the lows are being rejected. A bar chart would not give us that extra information. The 40-week moving average line has a positive slope.

The weekly OBV line shows a small decline after a long and strong rise. The MACD oscillator is pointed down but still stands well above the zero line.

In this daily Point and Figure chart of NUE, below, we can see that prices have reached and exceeded a downside price target in the $101 area.

In this weekly Point and Figure chart of NUE, below, we used close-only price data and a five-box reversal filter. Here we get a price target in the $155 area.

Bottom-line strategy: In our last review of NUE back on Aug. 11 we wrote that "Traders should raise stop protection to $104 from $99. Our targets are $143 and then $180." Traders who did or did not raise stops would have been stopped out. Dust yourself off and repurchase NUE again but risk to $89 now. Our price targets remain the same for now.

Note: Getting stopped out is risk control and is sometimes frustrating. This does not mean that trading or investing without stops is a better idea.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | Markets | Stocks | Technical Analysis | Trading

More from Stocks

Bearish Bets: 3 Stocks You Should Think About Shorting This Week

Bob Lang
Jun 26, 2022 10:30 AM EDT

These recently downgraded names are displaying both quantitative and technical deterioration.

For Smith & Wesson, Load, Cock and Fire Another Round

Bret Jensen
Jun 26, 2022 7:30 AM EDT

Here's how to aim for this gunmaker once more with a covered-call play.

Does the Big Bounce Mean More to Come? Let's See What Drove the Move

James "Rev Shark" DePorre
Jun 24, 2022 4:42 PM EDT

Much of the rally can be attributed to structural reasons, not fundamentals, technicals, or even macro ones.

MongoDB Is Poised for a Rally

Bruce Kamich
Jun 24, 2022 2:15 PM EDT

Here's our initial upside price target for MDB which provides a general purpose database platform.

See That Down the Road? It's the Big 'Green' Bubble, Ready to Pop

Jim Collins
Jun 24, 2022 1:30 PM EDT

Environmental, social, and corporate governance has created a monster and gullible investors should hit the brakes on their EVs and run from the Washington technocrats while they have the chance.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:10 AM EDT PAUL PRICE

    More Insider Buying in American Woodmark (AMWD)

    American Woodmark , which I've discussed here fr...
  • 08:55 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The 10 personality traits of successful traders an...
  • 12:08 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10

    As a Portfolio Name Agrees to a Merger, Here's Our...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login