{"id":726779,"date":"2026-06-26T07:30:15","date_gmt":"2026-06-26T07:30:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/726779\/"},"modified":"2026-06-26T07:30:15","modified_gmt":"2026-06-26T07:30:15","slug":"a-trading-opportunity-is-emerging-in-this-ai-infrastructure-play-charts-show","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/726779\/","title":{"rendered":"A trading opportunity is emerging in this AI infrastructure play, charts show"},"content":{"rendered":"<p>Over the past few weeks, we have focused on companies powering the next great infrastructure boom. First, it was Generac , which sits at the intersection of power reliability and the explosive energy needs created by artificial intelligence data centers. Then\u00a0it was Caterpillar , whose heavy machinery and record backlog highlighted the physical demands of rebuilding America&#8217;s infrastructure. Technically, both charts were great risk\/reward plays. Caterpillar&#8217;s chart stretched beautifully from the bottom left to the top right of the page \u2014 your classic uptrend. Generac is a textbook reversal from a long consolidating base with much\u00a0upside to get back to old highs. Both setups treated us well,\u00a0so why not swim in those waters again? As I look for themes over the second half of the year, nothing is changing my mind on the continued build and infrastructure story. Again,\u00a0as\u00a0we turn to the charts and search for\u00a0great risk\/reward setups, I keep coming back to\u00a0midcap industrial growth. These companies may not grab the same headlines as the mega-cap AI names, but they are becoming critical players in the picks-and-shovels trade\u00a0and are technically sound as well. This week&#8217;s search brings us\u00a0to MasTec . It&#8217;s a key builder of transmission lines, electrical grids, fiber networks, and energy infrastructure.\u00a0We all know AI data centers require massive amounts of electricity and connectivity, MasTec is positioned as a key player helping expand and modernize the grid needed to support that buildout. Better yet, it has a technical setup worth exploring. Here we\u00a0examine\u00a0the one-year daily chart. Shares\u00a0have been on a heck of a run \u2013 up about 133% over the last\u00a052-weeks.\u00a0It may feel tough to chase at these levels, but the recent pullback may be a good trading opportunity. The near-term trade\u2026 We see\u00a0MasTec shares flagging \u2013 a classic pullback from a strong uptrend.\u00a0The stock broke a few key moving averages in the 20-day and 50-day but is starting to recover. This gives us\u00a0a good risk\/reward opportunity over the coming days and weeks. Shares just recaptured the 50-day moving average\u00a0at $385 as well as\u00a0its\u00a020-day at $372. Use these levels to manage downside risk. If the pattern holds true these should act as\u00a0new support levels as the stock continues its\u00a0climb to\u00a0old highs at $440. If it\u00a0fails to\u00a0hold these\u00a0averages\u00a0the quick trade has failed and we will look for a better entry at another time. Also helping our bullish thesis is that the moving average convergence\/divergence, or MACD, has just triggered a\u00a0strong buy signal.\u00a0The last time the stock had\u00a0a significant MACD\u00a0crossover\u00a0it led to the next leg higher. The longer-term trade\u2026 When we back this MasTec chart out to a five-year\u00a0weekly\u00a0it looks even better.\u00a0If the short-term setup hits some turbulence and we\u00a0don&#8217;t\u00a0break out of this flag in the coming weeks,\u00a0then we look to the long term for a better entry. Shares\u00a0consolidated\u00a0for years\u00a0before breaking out in late 2024.\u00a0After breaking out,\u00a0the stock began\u00a0a powerful uptrend that continues to ebb and flow higher. Currently we are in one of those ebbs when looking at the weekly chart. We have seen this flagging pattern before and may remain in this phase a little longer. If so, we turn to the longer-term trendline that has guided us on this journey upward. Here we look for support at the $340 level, which would be slightly higher than its recent lows. Momentum-wise, MACD is confirming the price action as MasTec has made higher weekly lows along with price. However, to the far right of the chart\u00a0we can observe a negative crossover and may misinterpret this as a sell signal. As technicians, we have rules to negate false MACD signals; we can deploy trendlines to show price has not violated the primary growing trend, and neither has MACD to its own uptrend line. Using the trendline as our support, we have clearly defined risk\/reward parameters, albeit slightly wider on the long-term time horizon. Near term for those with\u00a0a low risk tolerance, use your moving averages as the guide. They should hold,\u00a0and the stock will likely make\u00a0a run to old highs at $440. Long term for those with more patience, respect the trend and use this weekly flag to buy dips\u00a0and wait for confirmation of a breakout. Matching the technicals with fundamentals is always helpful.\u00a0We know the first phase of the AI trade was about chips. The next phase\u00a0continues to be\u00a0about the\u00a0build. From Caterpillar moving the earth, to Generac keeping the lights on, and MasTec connecting the grid,\u00a0the infrastructure winners continue to prove that the AI boom is much bigger than just\u00a0mega-cap technology names and the trends are showing us that. Jay Woods, CMT with Chase Games DISCLOSURES: None All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL&#8217;S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.<\/p>\n","protected":false},"excerpt":{"rendered":"Over the past few weeks, we have focused on companies powering the next great infrastructure boom. First, it&hellip;\n","protected":false},"author":2,"featured_media":726780,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,116,122,43981,177303,112,280705,74],"class_list":["post-726779","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-breaking-news-markets","tag-business-news","tag-caterpillar-inc","tag-generac-holdings-inc","tag-markets","tag-mastec-inc","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/726779","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=726779"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/726779\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/726780"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=726779"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=726779"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=726779"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}