Chart of the Day: Vulcan Materials Is Building Something
The base-building in the higher echelon of the chart tells us this holding is ready to explode higher.
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One thing we like to see after a big run higher like that for Vulcan Materials VMC would be a nice, long basing period.
That is what we see on the chart after the stock ended a monster run higher in July. That was a huge 20% run on strong turnover, bullish indicators, heavy money flows in and a bullish trend. At some point the sellers do take control, what goes up does go down (even temporarily).
But there are those stocks that just do not give up much ground, Vulcan is one of them. Further, the best stock trends barely give you a chance to get on board, and those waiting for a pullback here have been sorely disappointed. That speaks to the strength of Vulcan and while the pullbacks are not where dip buyers would be active, no question any slight dip is being bought aggressively.
Money flow remains robust but has been gliding down, MACD is still long term bullish but has crossed over bearish, it makes sense as the stock price moved from strong bullish to cautiously bullish. Parabolic stop and reverse (SAR) just went bullish and should support the stock.
We see some upside coming here into Vulcan very soon. As Louise Yamada (famed technician) once said, "the longer the base, the higher the space," which means more upside ahead.
We like Vulcan Materials in TheStreet Pro Portfolio and rate it a two, or stockpile on pullbacks.
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At the time of publication, TheStreet Pro Portfolio was long VMC.
