Price Patterns - Temporary Price Spike Will Return to Trendline

The stock price of Chicago Bridge & Iron (CBI), a large engineering and construction firm, spiked after hurricane Katrina made landfall in Louisiana and Mississippi.

Investors bid up the price of CBI and other heavy construction company stocks such as Flour Corporation (FLR), Foster Wheeler (FWLT), Jacobs Engineering Group (JEC) and The Shaw Group (SGR) in anticipation of large-scale, post-damage construction and repair projects in the region.

The X-day straight up price move of CBI created a mini price bubble and was follwed by a price correction back to the upside trendline.