VMC still stuck within tight trading range
Vulcan Materials Company (VMC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, VMC finished the week 3.92% higher at 99.84 after edging lower $0.79 (-0.79%) today on low volume, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (VMC as at May 22, 2020):
Friday's trading range has been $3.53 (3.47%), that's below the last trading month's daily average range of $4.77. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VMC. Prices continued to consolidate within a tight trading range between 98.60 and 102.41 where it has been caught now for the whole last trading week.
Notwithstanding a strong opening Vulcan Materials closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
After trading down to 98.60 earlier during the day, the stock bounced off the key technical support level at 99.76 (S1). The failure to close below the support might increase that levels significance as support going forward. The market ran into sellers again today around 102.13 for the third trading day in a row after having found sellers at 102.40 in the prior session and at 102.41 two days ago. The last time this happened on May 13th, VMC actually gained 4.09% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 102.41 where further buy stops might get triggered.
Among the eight 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 476 times, VMC closed higher 57.77% 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 53.15% with an average market move of 0.44%.