In his Real Money column "Here's Who Would Bulk Up From a Big Infrastructure Bill", Jim Cramer gave some ideas of what the stock market would look like with a $1 trillion infrastructure package. He said that U.S. Concrete Inc. (USCR) has been a serial disappointment and he would not be a buyer.
Let's check out the charts of USCR to see if there is any hope for a recovery.
In the daily bar chart of USCR, below, we can see that the stock declined from early October to the middle of March. Prices have made a partial recovery but they have a long way to go.
Trading volume has been active since late February and the On-Balance-Volume (OBV) line has been rising from late April telling us that buyers of USCR have become more aggressive. Prices are trading above the rising 50-day moving average line but below the declining 200-day line.
The Moving Average Convergence Divergence (MACD) oscillator turned bullish in late May and is still pointed higher.
In the weekly bar chart of USCR, below, we can see that prices have been in a longer-term downtrend. The weakness this year brought the shares back to levels not seen since late 2012. Prices are below the declining 40-week moving average line.
The weekly OBV line is pointed up and the MACD oscillator has crossed to the upside for a cover shorts buy signal.
In this daily Point and Figure chart of USCR, below, we can see a potential upside price target in the $39-$40 area.
In this weekly Point and Figure chart of USCR, below, we see a potential price target of $56-$57.
Bottom-line strategy: USCR could trade back into the $25-$20 area, which should be a buying opportunity. Aggressive traders could go long in this area risking a close below $18. The $40 area is our first upside price objective.