Nucor Closed Near its 200 Day; Priceline Setting Up for a Break Out?

New York, December 9th (TradersHuddle.com) – After stocks tumbled in the prior session amid dwindling optimism around the EU summit, which spurred a risk off trade, we identified the following trading ideas.

Shares of Nucor Corp. (NYSE: NUE) closed at $39.58 near to its 200-day moving average currently set at $39.78. Nucor's price action is just below this key support level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 200day moving average.

The latest price action range, defined by a peaks and troughs algorithm places calculated support at $35.25 and calculated resistance at $41.57. Traders are closely watching these levels, as they provide great reference points for the latest price dynamics in Nucor shares.

Traders should evaluate their trade if they want to establish a position on Nucor given the resistance could materialize as the stock approaches the 200day moving average, particularly as today Wall Street was poised to stage a rebound. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes, traders need to exercise patience. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price action reference points.

Nucor Corporation (NYSE: NUE) manufactures carbon and alloy steel, steel joists, steel deck, cold finished steel, steel grinding balls, steel bearing products, and metal building systems. The company is based in Charlotte, NC.

Another idea is priceline.com (NASDAQ: PCLN). The name your price online Travel Company closed the prior session at $479.26. Price action is in a very tight range, given that calculated support is set at $472.00 and the calculated resistance based on an algorithm of peaks and troughs is set at $498.82

Priceline's stock price action indicates that both sellers and buyers are materializing very close to each other, which is indicative to a momentum building area, as the stock can resolve by breaking out of the tight range that developed.

Traders wanting to establish a position should place close attention to Priceline's price action, as any movement outside its predefined range could spur momentum buyers, looking for a big movement in the price of the stock. However the tight range resolution works both ways, hence, a move below support at $472.00 could spark above average selling. A tiered approach can be a good way to start a long position in Priceline, by establishing a starter position while the stock is in the tight range, and then adding to the position as it breaks and closes above resistance.