VMC runs into sellers around 116.42 for the third day in a row
Vulcan Materials Company (VMC) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
VMC finished the month 6.95% higher at 115.85 after edging lower $0.17 (-0.15%) today, strongly underperforming the S&P 500 (1.54%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (VMC as at Jun 30, 2020):
Tuesday's trading range has been $2.51 (2.17%), that's far below the last trading month's daily average range of $4.59. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for VMC.
Three candlestick patterns are matching today's price action, the Southern Doji and the Takuri Line which are both known as bullish patterns and one neutral pattern, the Doji. The last time a Doji showed up on June 25th, VMC lost -3.52% on the following trading day.
Prices are trading close to the key technical support level at 113.21 (S1). The market ran into sellers again today around 116.42 for the third trading day in a row after having found sellers at 116.74 in the prior session and at 116.64 two days ago.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the close-by swing high at 116.74 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 111.51 where further sell stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Vulcan Materials. Out of 567 times, VMC closed higher 52.38% 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 57.32% with an average market move of 1.03%.