Nucor Jumps 3.3% on Heavy Volume as Technicals Signal Bullish Continuation

Nucor (NUE) rose 3.27% in the most recent session, extending its gains to two consecutive days with a cumulative increase of 3.71%, closing at 126.19. This price action occurred on above-average volume, suggesting increased buyer conviction following a period of consolidation.
Candlestick Theory
Recent sessions show significant bullish momentum. The sharp decline on June 11th (-6.06%) formed a clear bottom at 117.13, succeeded by consistent bullish candles closing near session highs, culminating in a robust white candle on June 18th closing at 126.19. This candle breached the psychological resistance near 125, previously tested on June 10th. Key support now resides around 120.40-121.92 (recent swing low and consolidation zone), while resistance is evident at 129.10 (June 18th high), and stronger resistance near the March highs around 135-140.
Moving Average Theory
The calculated EMAs reveal a constructive trend structure. The 50-day EMA (approx. 122.50) has consistently acted as support during pullbacks, most notably in early June. Crucially, the 50-day EMA maintains its position above the 100-day EMA (approx. 118.80) and the 200-day EMA (approx. 117.60), forming a bullish sequence. This configuration signals an established intermediate to long-term uptrend. The price trading above all three key moving averages as of June 18th reinforces positive momentum.
MACD & KDJ Indicators
The MACD oscillator has turned decisively positive. The signal line crossed above the zero line after the June 13th surge, confirming renewed bullish momentum. The histogram is expanding, indicating accelerating upward pressure. Concurrently, the KDJ oscillator shows the K-line (approx. 85) and D-line (approx. 80) surging above 80, entering overbought territory. However, the strong upward trajectory and positive MACD suggest this may reflect strong momentum rather than an immediate reversal signal. J-line volatility is high but trending upwards. Both oscillators currently align with the bullish price action.
Bollinger Bands
Volatility, as measured by Bollinger Bands, contracted significantly prior to the mid-June move, indicating a compression and potential impending breakout. Price subsequently broke above the middle band (20-day SMA, approx. 122) and is now testing the upper band (approx. 128.50). Riding the upper band signifies strong short-term momentum. A sustained move above this level would be technically significant, while a consolidation below 128.50 is possible after the recent run.
Volume-Price Relationship
Volume analysis lends credibility to the recent advance. The substantial gap up on June 2nd (+10.10%) occurred on significantly above-average volume (7.45M shares), marking a clear breakout and validating the surge. Subsequent pullbacks, like the June 11th drop, occurred on elevated volume, suggesting capitulation. Importantly, the recovery since then, including the past two sessions' gains, has been accompanied by consistently higher-than-average volume, confirming the participation of buyers and supporting the sustainability of the upward move.
Relative Strength Index (RSI)
The 14-day RSI currently reads approximately 67 based on the calculation incorporating recent price gains. This places it in bullish territory, approaching the overbought threshold of 70. While not yet a decisive overbought warning, it signals that the security is becoming stretched to the upside in the short term. The RSI trajectory supports the bullish momentum but warrants monitoring for potential loss of upward momentum or bearish divergence formation. A reading above 70 would serve as a cautionary signal within the context of the prevailing uptrend.
Fibonacci Retracement
Applying Fibonacci retracement to the major swing from the March low (approx. 122) to the June high (129.1) identifies critical support levels. The 38.2% retracement level lies near 123.50, while the more significant 50% retracement sits firmly at 125.60. This 125.60 level proved crucial support during the June pullback. Price holding above the 50% retracement is bullish. The 61.8% retracement near 124.60 offers the next downside support if the 50% level were breached. Key upside extensions (beyond the prior high) to watch would be the 127.7% (approx. 134.20) and 161.8% (approx. 137.20) levels.
Confluence & Conclusion
Multiple indicators exhibit confluence, strengthening the technical thesis. The breach of the 125 resistance (Candlesticks), position above all key moving averages (especially the 50-day acting as support), positive MACD crossover above zero, and sustained volume on upside moves collectively signal robust bullish control. The primary area of caution stems from the KDJ being overbought and RSI approaching overbought levels near 67, alongside price testing the Bollinger Band upper limit. However, no significant bearish divergences are currently observed. The Fibonacci retracement zone around 125.60-123.50 offers robust support for pullbacks. While a short-term consolidation below 129.10 resistance is possible after the recent advance, the confluence of technical evidence suggests the path of least resistance remains upwards for Nucor, targeting a retest of the March highs in the 135-140 zone, provided support near 123.50-125.60 holds firm.