Another Boring Cement Company

• Posted by Greg Harmon
• on June 18th, 2014

If you have followed my work and trading for a while then you will know that I have taken a liking to the materials sector and in particular companies that make things that others use to make things with. Foe instance Alcoa ($AA), Century Aluminum ($CENX), US Steel ($x,This one has not doing so well) and Cemex ($CX). I am currently long all of these except for Century Aluminum and still like their prospects into the future. If you like this space than take a look at another one that is setting up today, Vulcan Material ($VMC). The chart below shows the long term technical prospects with a AB=CD pattern that targets a move to 81.40. in the short term it has a series of stair steps higher and a Measured Move on the latest one to 68. There is resistance above at 69.50 and then clear skies above with support from a rising and bullish RSI and a rising MACD. From a trading perspective, or a

reward to risk perspective, it also sets up well. The recent consolidation with support at 63.25 and the 20 and 50 day SMA’s at 62.47 and 62.88, give some choices for a natural stop in the trade. That gives a risk of $3 in the trade. If you want to spend less capital to get involved and have defined risk then look toward an August 65 Call (offered at $3.20 late Wednesday) for about the same risk. I got some at $3.10.

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