Home > sector analysis > Sector Analysis: Home Builders

Sector Analysis: Home Builders

Home builders have been in a steady downtrend for the last several months after a tremendous run up. The sector pulled back to its 20sma near the end of March, after a double bottom 4/2 – 4/12. The next rally moved all the way to the 50sma, this deeper pullback would lead us to be ready for a nice move up. We can expect one more test of the 4/2 lows, probably finding support at the 20sma. This will form a nice clean head and shoulders bottom, we will look for a couple of up days with significant volume before we start to nibble from the long side.

Stocks in the sector include: BZH, CTX, DHI, TOL, HOV, KBH, LEN, PMH, RY

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Categories: sector analysis
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