Foster Wheeler AG (FWLT) is a $2.52 billion dollar heavy construction company that is based in Switzerland. Recent data shows that they have $709 million in cash with only $152 million in debt. The chart formation for FWLT could also be called a reverse H&S, but it is not as clear.
What it Means: The positive weekly analysis of the industrial sector and the bullish action of construction & engineering industry group suggests that they could be market leaders well into 2013.
These two stocks also appear to have completed significant bottom formations, but I would be a patient, smart buyer and wait for a pullback to buy.
How to Profit: For Granite Construction Inc. (GVA), go 50% long at $30.44 and 50% long at $30.06, with a stop at $28.43 (risk of approx. 6%).
For Foster Wheeler AG (FWLT), go 50% long at $22.92 and 50% long at $22.46, with a stop at $21.44 (risk of approx. 5.5%).