Don't Ignore This Chart!

Don't Take This Stock For Granite

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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

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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