VMC finds buyers again around 144.87
Vulcan Materials Company (VMC) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
VMC finished the week -0.51% lower at 146.97 after gaining $1.89 (1.3%) today, strongly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing above Thursday's high at 146.60, the market confirmed its breakout through the prior session high after trading up to $1.04 above it intraday.
Daily Candlestick Chart (VMC as at Feb 14, 2020):
Friday's trading range has been $2.77 (1.91%), that's slightly below the last trading month's daily average range of $2.91. 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.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 144.87 earlier during the day, Vulcan Materials bounced off the key technical support level at 145.00 (S1). The failure to close below the support might increase that levels significance as support going forward. Prices are trading close to the key technical resistance level at 148.48 (R1). After having been unable to move lower than 144.55 in the previous session, the stock found buyers again around the same price level today at 144.87. The last time this happened on Monday, VMC actually lost -1.98% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 149.05 where further buy stops might get triggered. 2019's high at 152.49 is within reach and we could see further upside momentum should the share manage to break out beyond.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Vulcan Materials. Out of 480 times, VMC closed higher 58.13% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 52.71% with an average market move of 0.48%.