Nucor Plunges 6.06% as Death Cross Confirms Bearish Trend

Nucor (NUE) declined 6.06% in the latest trading session (2025-06-11), closing at $117.13 after trading between $116.21 and $120.47 on elevated volume of 3.61 million shares. This sharp downturn follows three consecutive sessions of modest gains, suggesting potential exhaustion of recent upward momentum amid growing selling pressure.
Candlestick Theory
The most recent candle is a long-bodied bearish marubozu, closing near its low after breaking below the prior day's support. This pattern indicates strong selling conviction and validates $120.47 as new resistance. Key support emerges at $116.21 (intraday low), aligning with the May 30 low of $106.21. A cluster of small-bodied candles in early June near $122 signaled indecision before the breakdown, while the June 2nd 10.10% surge formed a decisive bullish candle that established $125.75 as major resistance.
Moving Average Theory
Current prices trade below all key SMAs, confirming a bearish trend structure. The 50-day SMA (≈$128) crossed bearishly below both the 100-day (≈$132) and 200-day (≈$135) averages in late May, triggering a "death cross." This configuration signals sustained bearish momentum, with the descending 50-day SMA now acting as dynamic resistance. Continued trading below the 200-day SMA suggests longer-term bearish control.
MACD & KDJ Indicators
The MACD (12,26,9) maintains a bearish crossover below its signal line, with histogram bars expanding negatively – indicating accelerating downward momentum. Concurrently, the KDJ oscillator shows %K (17) and %D (23) in oversold territory, though without bullish crossover divergence. This KDJ/MACD confluence signals strong downside momentum. However, the oversold KDJ reading suggests potential for a short-term technical bounce, though not yet a confirmed reversal signal.
Bollinger Bands
Price breached the lower Bollinger Band (20-day SMA, 2SD) during the latest selloff, marking the first such violation since the April selloff. Band width has expanded 40% in five sessions, reflecting surging volatility. Historical precedent shows band expansions often precede continuation moves, though closes below the lower band have typically been short-lived. The 20-day SMA at $121.40 now becomes critical overhead resistance.
Volume-Price Relationship
The downtrend has been validated by increasing volume on declines, culminating in the highest volume day of the month during the 6.06% drop. The June 2nd 10.10% rally occurred on the second-highest volume (7.46M shares) in the dataset, confirming institutional participation in that advance. Recent distribution patterns (higher volume on down days) suggest continued selling pressure, with only a sustained close above $120 on high volume potentially invalidating the bearish structure.
Relative Strength Index (RSI)
The 14-day RSI has plunged to 29, entering oversold territory for the first time since April. However, the absence of bullish divergence remains notable – RSI made lower lows concurrently with prices during the recent breakdown. While statistically oversold, the momentum indicator hasn't yet signaled exhaustion of downward pressure. Traders should monitor for RSI divergence or a sustained climb above 35 to suggest potential trend stabilization.
Fibonacci Retracement
Applying Fibonacci levels to the March 21 high ($141.39) and April 7 low ($97.59):
- The 61.8% retracement ($110.50) provided support during May's consolidation
- Current breakdown breaches the 50% level ($119.49), which now becomes resistance
- Next support aligns with the 38.2% retracement at $114.20, reinforced by the psychological $115 level
- A sustained break below $114 would expose the $108.50 confluence (78.6% retracement + May 14 low)
Technical confluence appears strongest at $119.50, where Fibonacci resistance, the breached Bollinger lower band, and the 50-day SMA converge. Bearish momentum dominates across indicators, though oversold readings in RSI and KDJ suggest increasing vulnerability to short-covering bounces. Traders should monitor $116 support and $120 resistance for directional confirmation, with volume validation remaining critical for any reversal attempts.