Chart of the Week: PulteGroup
Sorry if you can’t see me too well, I’m on the road today, and I’ll be back the next day.
Let’s take a look at one of our favorite homebuilders here. This is Pulte Homes [PulteGroup]; PHM is the symbol.
As you can see the stock made a really nice run at the end of the last year in December. Really took off from the beginning of December and made a relative high of about $110 and just kind of went sideways for a little while. And you can see from the high of about $111 – 112.50 or so, the stock just went sideways here.
It came back down more recently to this 14-day moving average on the McKinley dynamic (we have the 50 and the 200 down here). So the stock kind of glided gently back down to this moving average, and now it’s ready to move back up.
However, we do have some signals that say, “Not so fast.”
Of course the parabolic SAR is still bearish here.
We don’t have a bullish crossover yet in the MACD. It’s starting to head that way.
We do have a bullish crossover, however, in the stochastics, which is down here in pane #3.
And money flow is starting to improve, it’s still negative right now.
All in all, I’d say Pulte Homes (PHM) is just finishing off a modest/slight correction here. It’s not very large at all. Again, back down to about the $100 level is a good spot for people to pick up the stock. That’s where it hit about a week or so ago – just above $100 – and it’s starting to make a move again.
What would get us really interested in this stock would be a move above these old highs, let’s call it about $110. Get above $110 and I think the stock’s got some movement to the upside.
That’s it – Pulte Homes [PulteGroup]. Have a great day everyone!
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