Is Nucor Closing in to Support?

Published on Friday, 03 August 2012 07:40 Written by TradersHuddle Wire

New York, August 3rd (TradersHuddle.com) - Shares of Nucor Corporation (NYSE:NUE) are trading very close to calculated support at $36.61 with price action closing at just $38.48 and placing the stock near levels where traders will start paying attention.

Nucor's stock range is defined by its calculated support defined at $36.61 and by the resistance level at $39.42, which should be used by traders planning their trades. These support and resistance levels are based on a peaks and troughs algorithm of the stock's price action.

Traders wanting to establish a position should pay close attention to Nucor's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $39.42 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

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