NEW YORK (TheStreet) -- There might not be universal acceptance of the need for the U.S. to spend money on infrastructure, but Macquarie Infrastructure(MIC) - Get Report might be a great "contrary opinion" play.
While there may be a great need for new bridges, roads, airports, ports and rail transportation -- as a lifelong New Jersey resident, you don't have to sell me -- the chart of MIC, above, looks toppy. The chart looked good until June when it changed abruptly. The On-Balance-Volume (OBV) line was in an uptrend until June and then it nosedived dramatically. Prices broke below the flat 50-day average in July and we broke below the 200-day average in August. The 50-day went below the 200-day, generating a death cross at the end of September. Rallies to the underside of the 200-day have failed in recent weeks.
The longer-term chart above shows MIC failing at the 40-week average, the OBV line struggling and the MACD oscillator below the zero line. We look for MIC to work lower in the weeks ahead. A test of support around $70 is our first price objective.
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