Vulcan Materials Is on Fire, Making a Major Breakout

The shares continue to rally, remaining in a strong uptrend from their March low.

Vulcan Materials (VMC) has been trading higher the past year and has just made a major upside breakout on the weekly Point and Figure chart.

I reviewed Vulcan Materials on May 12 and wrote that "Traders who went long VMC in April should raise stops to $175. Traders could add to longs on strength above $212. $259 and then $280 are my price targets now."

With share prices above $212, let's review the charts again of this Action Alerts PLUS holding. 

In the daily bar chart of VMC, below, I can see that the shares have remained in a strong uptrend from their March low. Prices trade above the rising 50-day moving average line and above the rising 200-day line.

The On-Balance-Volume (OBV) line continues to point upwards telling me that buyers of VMC are more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and bullish. 

 

In the weekly Japanese candlestick chart of VMC, below, I can see that the shares are ready to challenge their 2022 highs. Prices trade above the rising 40-week moving average line.

 

The OBV line has been improving from last June. The MACD oscillator is in a bullish alignment above the zero line. 

 

 

In this daily Point and Figure chart of VMC, below, I can see an upside price target in the $271 area. 

 

 

In this weekly Point and Figure chart of VMC, below, I can see that the trade at $212 was a fresh upside breakout. The $267 area is the current price target. 

 

 

Bottom-line strategy: Traders who are long VMC should continue to hold. Traders could add to positions at current levels. Raise stops to $200 from $175. The $267-$271 area is my price target for now.

 

(Vulcan Materials is a holding in TheStreet's  Action Alerts PLUS portfolio . Want to be alerted before the portfolio buys or sells VMC? Learn more now . )

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