After struggling the first three months of the year, Vulcan Materials (VMC) is showing signs of life since late March with good upside volume and a breakout in early May. Notice that the stock broke above a resistance zone in the 122-125 area and this zone turns into support. The stock fell back into this zone and then consolidated with a triangle of sorts. We can debate where to draw the triangle lines, but this misses the bigger picture. The stock is consolidating above the breakout and this consolidation is a bullish continuation pattern. Look for a breakout at 130 to signal an end to this consolidation and a resumption of the bigger uptrend. I consider the bigger trend up because the 50-day EMA is above the 200-day EMA, the 200-day EMA is rising and the stock is above the 200-day EMA.
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Thanks for tuning in and have a great day!
--Arthur Hill CMT
Plan your Trade and Trade your Plan
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