Nucor Broke Resistance

Published on Friday, 04 January 2013 08:20 Written by TradersHuddle Wire

New York, January 4th (TradersHuddle.com) - Shares of Nucor Corporation (NYSE:NUE) closed the session at $44.69 just above calculated resistance at $44.00. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

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

The stock was trading in a well defined range with support at $38.83 and resistance at $44.00. Given that this range was broken, traders will be closely monitoring Nucor's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Nucor is still near the broken resistance level, traders will be focusing on the $44.00 level to see if the stock holds the breakout without rolling over.