D.R. Horton Broke Out. Now it’s Pulled Back
D.R. Horton broke out to new highs last month, and now it’s pulled back.
The first pattern on today’s chart is the July 25 weekly low of $170.33. The homebuilder probed below this level a few times last week but managed to remain above it. That may suggest that new support has been established above its previous record high from April 2.
Second, the 21-day exponential moving average (EMA) is rising from below to the same price area. The 8-day EMA is also above the 21-day EMA. Those signals may reflect a bullish short-term trend.
Third, the 50-day simple moving average (SMA) recently crossed above the 100-day SMA. Both are above the slower-moving 200-day SMA. Those signals may reflect a bullish longer-term trend.
Next, a stochastics crossover has occurred near oversold territory.
Finally, you have the series of lower highs since the end of July. Traders may now watch for a potential breakout through that falling trendline – especially with key housing data scheduled for later this week. (NAHB’s homebuilder sentiment index is on Thursday, followed by housing starts and building permits on Friday.)
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The first pattern on today’s chart is the July 25 weekly low of $170.33. The homebuilder probed below this level a few times last week but managed to remain above it. That may suggest that new support has been established above its previous record high from April 2.
Second, the 21-day exponential moving average (EMA) is rising from below to the same price area. The 8-day EMA is also above the 21-day EMA. Those signals may reflect a bullish short-term trend.
Third, the 50-day simple moving average (SMA) recently crossed above the 100-day SMA. Both are above the slower-moving 200-day SMA. Those signals may reflect a bullish longer-term trend.
Next, a stochastics crossover has occurred near oversold territory.
Finally, you have the series of lower highs since the end of July. Traders may now watch for a potential breakout through that falling trendline – especially with key housing data scheduled for later this week. (NAHB’s homebuilder sentiment index is on Thursday, followed by housing starts and building permits on Friday.)
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit [url =tradestation.com/DisclosureTSCompanies] TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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