Chart of the Day: This Holding Is About to Make an Important Move
The stock is right at resistance but could break free any day now.
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A minor correction for Vulcan Materials VMC seems to have passed and now the stock is on its way to converting towards a bullish uptrend. The candles are still pink or purple, which means bearish (cautiously) on the GoNoGo composite of indicators. That's okay though, other indicators such as the MACD (moving average convergence divergence) are now on a buy signal.
What we find interesting here is in pane 3 the chop indicator, which is heading lower. What does that mean exactly? Well, it tells us the chop is over and a new trend is forming, and that is probably bullish.
Momentum is also strong, the stochastics (pane 4) are pointing upward though we do have some weakness in money flow. We suspect a move above that downtrend line (and confirmed by a second higher close) would be enough to bring buyers in from the sidelines.
Where might the stock run to? The line drawn near the top is about the $275 level, look for some resistance at that level.
We like Vulcan Materials and rate it a One in TheStreet Pro portfolio.
At the time of publication, TheStreet Pro Portfolio was long VMC.
