Technical Pulse: Nucor Corporation November 16, 2022 110

 

Nucor Corporation (NYSE: NUE) A potential breakout of the key neckline resistance at US$145 level following a bullish double bottom formation to retest the year high resistance at US$186 as:   

 

  1. The price tested the key neckline resistance at US$145 multiple times, following a bullish double bottom formation. A breakout of this key level would signal for more bullish upside to come, with the price forming a series of higher lows along the uptrend support line prior to this.
  2. The Moving Average Convergence Divergence (MACD) technical indicator is currently displaying increasing bullish momentum with the sustained crossover of MACD line over the Signal line.
  3. The price could retest the year high resistance level at $186.16 in the resistance zone at $174-186. This is confluent with the projected target of the double bottom formation breakout, where the breakout height of about US$41 measuring from the double bottom support to neckline resistance is projected onto the neckline resistance to determine the take profit target.

*Expected timeline of the trade is 13 weeks from the date of report issuance.

 

CHART LEGEND

 

Red box = Resistance zone

Green box = Support zone

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About the author

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Zane Aw
Technical Analyst
PSR

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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