President-elect Trump has suggested that his presidency will focus on infrastructure and, as a result, heavy construction ($DJUSHV) finished last week higher by 12.36% to lead all industrial groups. While there are plenty of quality companies to choose from, Granite Construction (GVA) surged 23.80% to follow many small cap stocks higher in this industry group. The breakout was notable as you can see below:
Note that the SCTR ranking began to surge in late October and that's been followed by a very heavy volume breakout above price resistance, which was near 51.00. GVA is likely to be volatile because it's a small cap and its short-term momentum oscillator readings are now quite oversold, especially RSI. However, a pullback to test price support at 51.00 and/or the rising 20 day EMA, now at 48.75, would be solid reward to risk entry points in the days and weeks ahead.
Happy trading!
Tom
