Trading Idea: - Is Nucor close to Resistance?

Published on Thursday, 14 February 2013 07:44 Written by TradersHuddle Wire

New York, February 14th (TradersHuddle.com) - Shares of Nucor Corporation (NYSE:NUE) are trading very close to calculated resistance at $48.37. The stock ended the trading session at just $47.47, which is near levels that make it difficult to buy or start a 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

Nucor's stock range is defined by its calculated support defined at $38.83 and by the resistance level at $48.37; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Nucor. However, as the stock pulls back towards $38.83 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $48.37 then traders will get an opportunity to enter the stock as it moves to a higher range.