Vulcan Materials Company produces and sells construction aggregates,
asphalt mix, and ready-mixed concrete primarily in the United States. It
operates through four segments: Aggregates, Asphalt Mix, Concrete, and
Calcium. The Aggregates segment offers crushed stone, sand and gravel,
sand, and other aggregates, as well as related products and services.
The Asphalt Mix segment offers asphalt mix in Arizona, California, and
Texas. The Concrete segment produces and sells ready-mixed concrete in
Georgia, Maryland, New Mexico, Texas, Virginia, Washington D.C., and the
Bahamas. The Calcium segment mines, produces, and sells calcium
products for the animal feed, paint, plastics, water treatment, and
joint compound industries.
Take a look at the 2-year chart of Vulcan (NYSE: VMC) below with my added notations:
Over the past 3 months VMC has created a key level of support (red)
at $85. That line is also the “neckline” for the stock’s head and
shoulders (H&S) reversal pattern. Above the neckline you will notice
the H&S pattern itself (blue). Confirmation of the H&S would
occur if VMC breaks the support, and lower prices would be expected from
there.
The Tale of the Tape: VMC has formed a head &
shoulders pattern. A long trade could be made at $85 with a stop placed
below that level, but ideally, the pattern implies a short trade to be
entered on a break below that level instead.
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