NEW BULLISH Plays
NUCOR - NUE - close: 42.69 change: +1.56 stop: 39.95
Why We Like It:
Tuesday's bounce in the euro pushed the dollar lower, which fueled a surge in commodities. The steel and metal stocks produced an impressive bounce. NUE was already trying to bounce from support near the $39-40 zone. I would prefer to buy NUE on a dip near $41.50 but that may not happen so I'm suggesting small bullish positions now. This is a volatile sector and this trade could reverse easily if the dollar rallies again and commodities reverse lower.
I'm suggesting a stop loss at $39.95 but more aggressive traders may want to put their stop under the February low of $38.93. There is potential resistance with a virtual cloud of moving averages between $44 and $45 but if this rally is for real then NUE should be able to claw its way higher. Our first target to take profits is at $46.75. Our second and final target is $49.85. Our time frame is about four to six weeks.
Entry on February 16 at $42.69 (small positions)
Change since picked: + 0.00
Earnings Date 04/22/10 (unconfirmed)
Average Daily Volume: 6.1 million
Listed on February 16, 2009