Don't Ignore This Chart!

Vulcan Materials Consolidates above Breakout Zone $VMC


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. 

Thanks for tuning in and have a great day!
--Arthur Hill CMT

Plan your Trade and Trade your Plan

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. 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