Is Vulcan Breaking Out?

Published on Thursday, 05 July 2012 08:32 Written by TradersHuddle Wire

New York, July 5th (TradersHuddle.com) - Shares of Vulcan Materials Company (NYSE:VMC) closed the session at $40.72 just above calculated resistance at $40.04. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

Vulcan Materials Company (NYSE:VMC) produces construction aggregates. The Birmingham, Alabama based company principal product lines are aggregates, asphalt mix and concrete, and cement.

The stock was trading in a well defined range with support at $32.81 and resistance at $40.04. Given that this range was broken, traders will be closely monitoring Vulcan's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Vulcan is still near the broken resistance level, traders will be focusing on the $40.04 level to see if the stock holds the breakout without rolling over.