Don't Ignore This Chart

NUE Shows Early Signs of Ending its Correction $NUE

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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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--Arthur Hill CMT

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Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. He has written articles for numerous financial publications including Barrons and Stocks & Commodities magazine. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed technician. In addition to his CMT designation, Arthur holds an MBA from the Cass Business School at City University in London. Learn More
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