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Swing Trade Idea (NUE) – April 11, 2024

Our bearish trade for Thursday, April 11th is Nucor Corp. (NUE). NUE is part of the Materials Sector, which traded at 1.38% over the last month, with NUE overperforming at 7.23% over the same period.

NUE traded into new highs after almost 6 months of bullishness, over-extending it to the upside. NUE also broke out above its uptrend trajectory and a pullback to at least $190 would be expected. Furthermore, the Materials sector is pulling back to lower levels, away from an area of resistance, which could drive the price of NUE even below $190, over the duration of this trade.

As a close, if NUE were to trade above $200 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves below $2.93.