Vulcan Materials Has Built a Solid Foundation for Potential Gains

Let's review the charts and indicators.

Vulcan Materials Co (VMC) is the nation's largest producer of construction aggregates - crushed stone, sand and gravel - and a major producer of asphalt and ready-mixed concrete. Not sexy but needed stuff.

Let's check the charts and indicators.

Vulcan Materials Co (VMC) is the nation's largest producer of construction aggregates - crushed stone, sand and gravel - and a major producer of asphalt and ready-mixed concrete. Not sexy but needed stuff.

In this daily bar chart of VMC, below, I see a mixed picture. Prices have oscillated around the 200-day moving average line. Prices are currently trading below the declining 50-day moving average line but trying to stay above the rising 200-day line.

The On-Balance-Volume (OBV) line shows strength by moving above the highs of August, December and March. The Moving Average Convergence Divergence (MACD) oscillator crossed to the upside for a cover shorts buy signal. An outright buy signal could be a week away.  

 

In this weekly Japanese candlestick chart of VMC, I see a picture with promise. Prices are trading just slightly below the 40-week moving average line. The weekly OBV line shows uneven strength from June. The MACD oscillator is above the zero line.

 

 

In this daily Point and Figure chart of VMC, below, I can see a potential upside price target in the $190 area.

 

 

In this weekly Point and Figure chart of VMC, below, I can see a potential downside price target in the $139 area.

 

 

Bottom line strategy: Traders could go long VMC at current levels and on strength above $175. Risk to $158. The $190 area is our target for now. 

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