3 Infrastructure Stocks To Watch Before They Could Move Higher

The consensus is that the Biden Administration will spend enormous amounts of money to improve the country’s infrastructure. This will benefit companies that will be involved in the massive construction projects that will come with the spending plan.

They include Martin Marietta Materials, Inc. MLM, Caterpillar Inc. CAT, and Eaton Corporation plc ETN. The charts of these stocks are similar and are all testing resistance.

However, they have also formed classic ascending triangle patterns. These patterns are bullish and suggest the resistance will be broken. The share prices could break out and make meaningful moves higher.

See Also: The Biden Infrastructure Plan: What You Need To Know

On the following charts, the blue horizontal line shows the resistance. These sellers who created the resistance have been passive over the past month. They have been content to stand still and not try to sell at higher prices.

The red line is the ascending part of the triangle pattern. It shows that over the past month, the buyers have become increasingly aggressive. They have paid successively higher prices.

This combination of passive sellers and aggressive buyers is bullish for any type of market. It's the bullish dynamic that the ascending triangle pattern illustrates.

Martin Marietta is a building materials company. Its products include things like concrete and asphalt. Shares are trading close to the $350 resistance level.

Caterpillar is one of the world’s largest heavy construction equipment manufacturers. Shares are testing the resistance at the $235 level.

Eaton is a power management company. It’s involved in electrical power distribution and its customers include companies like Caterpillar and Martin Marietta. There’s resistance for the stock at the $142 level.