Don't Ignore This Chart!

Heavy Construction Tests Support, Here's A Potential Winner

 | 

The Dow Jones U.S. Heavy Construction Index ($DJUSHV) is currently testing its rising 20 week EMA and is near key support in its four month sideways consolidation range from 440-480.  Friday's close was 447 and the weekly RSI is now at 43, typically a solid level on the RSI where we see price reversals occur.  If the DJUSHV does, in fact, begin to recover and head back towards 480, one stock poised to recover could be Granite Construction (GVA), which is currently testing major support.  Take a look:

While there's no guarantee of a rebound in the DJUSHV or in GVA shares, there are reasons why we could see a reversal in both in the near-term and the reward to risk in trading GVA would seem to be solid at the current time and price.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market. Learn More
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus