06Dec10:24 amEST

Nucor Gets to the Core

Based in Charlotte, Nucor Corporation is is the largest steel producer in the U.S.. We know that materials, including steels, have been threatening to emerge from multi-month, sideways consolidations as a group of late. But they have suffered plenty of false starts along the way and have yet to confirm fresh breakouts. 

Thus, NUE is one of our keys now, especially considering the monthly chart setup, seen below. 

Note how Nucor has been flirting with that $60 level time and time again, but has yet to decisively break it higher to sustain a new leg up. If that materializes, I strongly suspect it will coincide with a new bull run in steels and likely materials as a group. The basing action on this timeframe is also occurring with prior resistance from 2014 now appearing to convert into newfound support, which is a checkmark in the bull thesis column. 

Without question, the allure of a new steel rally makes for a defined upside target, since NUE could easily test prior all-time highs from May 2008 which, incidentally, was also a time when we saw a late-stage bull market rotation (and indeed the last rotation before the bottom then fell out of everything) into commodities. 

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