Trading Idea - Is Vulcan close to Resistance?

Published on Thursday, 09 September 2010 05:08 Written by Christian Paolinetti

New York, September 9th (TradersHuddle.com) - Shares of Vulcan Materials Company (NYSE:VMC) are trading very close to calculated resistance at $39.75 with the current price action closing at just $38.25 placing the stock near levels that make it difficult to buy.

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

Vulcan's current stock range is defined by current calculated support defined at $36.36 and by the resistance level at $39.75, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Vulcan , as the stock is well above support, however, as the stock pulls back towards $36.36 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $39.75 then traders will get an opportunity to enter Vulcan stock by establishing a position as the stock moves to a higher range.