Don't Ignore This Chart

NUE Shows Early Signs of Ending its Correction $NUE

Nucor (NUE) is flat year-to-date and lagging the S&P 500, but the bigger trend is up and short-term momentum is turning up. The bigger trend is up because Nucor surged to a 52-week high in early December and the 10-week EMA remains above the 40-week EMA, even after the recent decline. Notice that this decline retraced around 50% of the prior advance and returned to the rising 40-week EMA the last few weeks. The retracement amount is typical for a correction, as is the dip back to the 40-week EMA. The PPO (5,30,5) show early signs of an upturn and NUE closed back above the 10-week EMA last week. These are the first signs that the correction is ending and a break above the April-May highs would complete the process. 

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