EarningsBeats Digest

Published: Mon, 03/21/22

EarningsBeats.com Digest for March 21, 2022

Trading Places Live!

Join Tom Bowley for a briefing on market activity on Mondays and Wednesdays from 9-9:30 am EST before the opening bell. Click here to listen live or visit our YouTube page later today to view the recorded session.

Leading Stock In A Strengthening Industry Group

Over the past few weeks, the heavy construction index ($DJUSHV) has risen significantly, nearing a new 2022 absolute high. Relative strength in the industry has been on the move higher since early February and the group last week set a 52-week relative high. Any time I see industry strength on a relative basis, I begin to look at individual stocks to see what's driving the industry group strength. Fluor Corp (FLR) is one of the leading stocks that's creating a lot of interest in the heavy construction group. Here's the current outlook on FLR:

The 25.00-25.50 area had served as key price resistance dating back to May 2021. To open 2022, FLR made another run at this level, but failed. In March, however, FLR made a high volume surge to clear this resistance level. Its AD line is also surging, suggesting that Wall Street is likely accumulating the stock. I'd expect to see FLR continue to perform well. Any pullback into the 25.50-26.00 range would represent excellent price support for short-term entry. A close below 25.00 would be a warning and should be respected. Consider keeping a closing stop in play.

Happy Trading!

Tom Bowley
Chief Market Strategist

EarningsBeats.com
Better Timing. Better Trades.