TopBuild Tops its Highs for a Year

Yesterday, we looked at a Daily Price Chart for Technology Select Sector SPDR and noted that the stock has been making a series of 52-Week Highs.

Today’s Chart of the Day is a Daily Price chart for TopBuild Corp. (NYSE: BLD).

BLD engages in the installation and distribution of insulation and other building products — rain gutters, glass and windows, fireproofing and firestopping products, garage doors, fireplaces, shower enclosures, and more — to the U.S. construction industry.

Now, the Daily Price Chart below shows that BLD has traded in a clear bullish pattern of higher highs and higher lows for the last year.

Track the Price Chart from the lower left to the upper right…

This bullish trading pattern points in the direction of a further advance.

You see, typically stocks that make a series of two or more higher highs and higher lows reliably continue on in an upward trend.

But it’s important to note that strong stock rallies are characterized by pullbacks and price retracements.

These pullbacks present a buying opportunity for us.

Purchasing BLD after a 3 to 5% price pullback has provided a good entry point for the stock this year, and has brought us a healthy return.

BLD will remain on our radar as it steadily tops its previous highs. We’ll be checking for price pullbacks.

Best Regards,

Chuck Hughes
Editor, Chart Of The Day

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