Infrastructure Play Martin Marietta Materials Looks Bullish and Strong

Along with Caterpillar (CAT) , Martin Marietta Materials (MLM) is another beneficiary of the passage of the infrastructure legislation. Ideed, MLM has been soaring northward in recent days.

Let's check out the charts and indicators because our last MLM review was back on June 17 and a lot has changed.

In the updated daily bar chart of MLM, below, we can see that the shares moved sideways from May to into October. Only since October have prices turned higher. A number of successful tests of the rising 200-day moving average line can be seen in September and October. In hindsight, this was a buying opportunity. MLM is trading above the rising 50-day and 200-day moving averages.

The On-Balance-Volume (OBV) line declined from June but stabilized in October and shows the start of a rise this month. The Moving Average Convergence Divergence (MACD) oscillator is very bullish and pointed higher.

In the weekly Japanese candlestick chart of MLM, below, we see a very positive picture. Prices are in a longer-term uptrend and trade above the rising 40-week moving average line. The weekly OBV line is at a new high to confirm the new price highs.

The MACD oscillator just crossed to the upside for a new outright buy signal.

In this daily Point and Figure chart of MLM, below, we used a five-box reversal filter. Here the software suggests a price target in the $480 area.

In this weekly Point and Figure chart of MLM, below, we can see a $613 price target.

Bottom-line strategy: Traders could go long MLM as close to $420 as possible, risk to $380 for now. The $480 area is our first price target. The round number of $500 is our secondary target.

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