Chart of the Day: Builders FirstSource is Coiling For a Move
The chart is constructive and is giving off a bullish signal.
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When we last talked about Builders FirstSource (BLDR) the stock was coming of a massive downtrend. We mentioned at the time a period of base building would be required before the stock would be ready to make a move, and that the 100-day moving would be good resistance. That remains the case, but the candles are now blue which is strongly bullish. The base building has been constructive, while allowing the other indicators to 'catch up' to bullish conditions.
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The MACD is crossed over now for a bullish signal, parabolic SAR (stop and reverse) just flipped bullish last week as that condition continues. The tight range here in the price of the stock is bullish and will eventually explode, which we see as higher very soon. This would be a good time to add more shares.
We rate Builders FirstSource a one in TheStreetPro portfolio, buy at anytime.
