VMC unable to break through key resistance level

Vulcan Materials Company (VMC) Technical Analysis Report for Jan 15, 2020 | by Techniquant Editorial Team


VMC unable to break through key resistance level
VMC finds buyers again around 138.66
VMC closes within previous day's range


VMC ended Wednesday at 139.66 edging higher $0.26 (0.19%), performing in line with the S&P 500 (0.19%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.

Daily Candlestick Chart (VMC as at Jan 15, 2020):

Daily technical analysis candlestick chart for Vulcan Materials Company (VMC) as at Jan 15, 2020

Wednesday's trading range has been $2.19 (1.57%), that's slightly below the last trading month's daily average range of $2.26. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VMC.

During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.

Unable to break through the key technical resistance level at 139.74 (R1), the share closed below it after spiking up to 140.85 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move lower than 138.39 in the previous session, the market found buyers again around the same price level today at 138.66. The last time this happened on January 8th, VMC gained 0.66% on the following trading day.

Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 142.10.

The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.

Selling might accelerate should prices move below the close-by swing low at 138.39 where further sell stops could get triggered.

Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Vulcan Materials. Out of 71 times, VMC closed lower 56.34% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after seven trading days, showing a win rate of 56.34% with an average market move of 0.02%.

Market Conditions for VMC as at Jan 15, 2020

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