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

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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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