About the Stock (NYSE: NUE)
Nucor Corporation is a major American steel and steel products manufacturer, also recognized as the largest recycler in North America. Headquartered in North Carolina, Nucor is the largest steel producer in the United States and the 16th largest globally. The company operates in three segments: steel mills, steel products, and raw materials.
Stock background:
Nucor Corporation’s stock hit a 52-week low in April due to a mix of factors including the weakness in steel prices, global supply chain disruptions, and demand uncertainty. However, US steel producer stocks have surged after US President Donald Trump in June doubled the tariff on steel and aluminium imports to 50% from 25%.
Analysts forecast steel prices are likely to remain well supported over the next 3-5 years. Moreover, Nucor has invested heavily in recent years, and many of those projects are starting to contribute to earnings. Free cash flow, which turned negative in Q1, could turn positive again given reduced US recession risks and easing geopolitical tensions.
Earnings from major steel producers rose in Q2 despite mixed guidance. Nucor is due to announce Q2 results on July 28. The company expects Q2 earnings to increase across all three operating segments with the largest increase in steel mills segment, driven by higher average selling prices at sheet and plate mills.
NUE (Weekly):
Technical Analysis on Nucor Corporation (NYSE: NUE)
Our proprietary system TradersGPS (TGPS) has turned Bullish on Nucor Corporation on the weekly charts. As per our system, Blue candles indicate the stock’s trend is up. Red candles indicate the trend is down. The system turned Bearish in mid-2024 and maintained the stance until June 2025, capturing nearly 30% of the downside. Back-to-back two Blue candles over the past two weeks are a sign that after sustained weakness, the stock’s trend is turning around.
NUE (Daily):
Chart Source: TradingView
After making a record high in April 2024, Nucor Corp. has maintained a steady downtrend until it found support at about 95 (the 50% retracement of the 2020-2024 rally). The higher-top-higher-low sequence in the past two decades shows that the primary trend remains up despite the recent retreat. Nucor is now attempting to break above key resistance on the upper edge of a declining channel since 2024. A decisive break above would be a sign that the downtrend is fading. Any break above the February 2025 high of 143 would raise the prospects of a resumption of the long-term uptrend, opening the way toward the November 2024 high of 170.
On the downside, there is initial support at the early-May high of 124, followed by stronger support at the April low of 98. For the bullish scenario to play out, the stock needs to hold above the April low. Any break below the April low would exacerbate downside risks potentially toward the July 2021 low of 88 followed by the 2008 high of 84. Most importantly, renewed weakness in the stock would call for a reassessment of the broader bullish outlook/uptrend.
