Nucor Close to Resistance

Published on Thursday, 09 February 2012 07:52 Written by TradersHuddle Wire

New York, February 9th (TradersHuddle.com) - Shares of Nucor Corporation (NYSE:NUE) are trading very close to calculated resistance at $45.74 with the current price action closing at just $45.31 placing the stock near levels that make it difficult to buy.

Nucor Corporation (NYSE:NUE) manufactures carbon and alloy steel, steel joists, steel deck, cold finished steel, steel grinding balls, steel bearing products, and metal building systems. The company is based in Charlotte, NC

Nucor's current stock range is defined by current calculated support defined at $37.98 and by the resistance level at $45.74, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Nucor, as the stock is well above support, however, as the stock pulls back towards $37.98 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $45.74 then traders will get an opportunity to enter Nucor stock by establishing a position as the stock moves to a higher range.