Chart of the Day: Vulcan Materials Breaks From Downtrend
The stock gapped higher earlier this month and continues to move upward.
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Even though Vulcan Materials VMC was in a paralyzing downtrend last month, it seems the stock found some buyers in the $250 area. The move down was slow, a 20% loss from the highs in November, but finding support was key for this big materials name.
Notice on the chart a few days of finding the lows in early January, attempts to break down were foiled by the bulls and then a huge gap higher mid-month has brought on continued buying.
Indicators are now in alignment with the price trend, which has been showing higher highs and higher lows since that gap. You can see in the second pane in the chart that the Moving Average Convergence Divergence indicator is solidly on a "buy" signal. Also, above, you can see the Stochastics are embedded, which means dip buyers are going to come in at every opportunity to add more shares (for now).
Money flow, in the bottom pane, just went bullish. All in all, a very impressive move up toward the old highs, which may serve as resistance. But the long term prospects for VMC are quite good.
We like Vulcan Materials in the Pro Portfolio and rate it a one, buy at anytime.
At the time of publication, the Pro Portfolio was long VMC.
