Texas Industries appears on the verge of a new up-leg.

Stock Market Comment

Texas Industries declined from $80.35 to $12.58 (A-B), had a recovery rally to $48.72 (C) and then settled in a wide horizontal trading range mostly between $27.50 and $47.00 (dashed lines). Price action over the past five months has been above the rising 40-week Moving Average (40wMA). A rise above $48-49 would confirm the breakout and the start of a new major up-leg.

Technical indicators including the rising 40wMA and the MACD (lower panel) confirm the bullish status. Only a decline below the 40wMA (currently at ±$38.50) would suggest a return toward the bottom of the trading range.

A rise above $48-49 would signal Point & Figure targets of $54 and $59 (17% and 28% appreciation potentials from current levels). The large trading range (dashed lines) supports higher targets.