Vulcan Materials Is Setting Its Sights on Higher Highs

We have two new price targets.

Vulcan Materials (VMC)  , an Action Alerts PLUS holding, is a producer of construction aggregates (crushed stone, sand and gravel) which is needed every day on nearly every building site. I wrote about VMC on April 17, recommending that "Traders could go long VMC at current levels and on strength above $175. Risk to $158. The $190 area is our target for now."

Let's review the charts again.

In this daily bar chart of VMC, below, I can see that prices have soared since my buy recommendation last month. Traders could raise stop protection to $175 now. VMC gapped higher earlier this month on heavy trading volume. Prices have inched higher in a tight daily range.

The slope of the 50-day moving average line is positive as is the slope of the 200-day line. The daily On-Balance-Volume (OBV) line is very positive and has made a new high for the move up. The trend-following Moving Average Convergence Divergence (MACD) oscillator is bullish too. 

 

In this weekly Japanese candlestick chart of VMC, below, I still see a constructive picture. Prices have made a new high for the recent move up. VMC trades above the rising 40-week moving average line.

 

The weekly OBV line has made a new high for the move up. The MACD oscillator has just crossed to the upside for a new outright buy signal. 

 

 

 

In this daily Point and Figure chart of VMC, below, I can see an upside price target of $199.

 

 

In this weekly Point and Figure chart of VMC, below, I can see a potential price objective in the $259 area.

 

Bottom line strategy: 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.

Employees of TheStreet are prohibited from trading individual securities.