December 1 Chart of the Day - D.R. Horton, Inc.
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The stock of home builder D.R. Horton, Inc. (DHI) has risen over 20% in the past month in spite of rising interest rates that have deterred some home owners from moving this year.
So we wanted to take a look at the company's chart from a price action technical analysis perspective.
We can see on the monthly chart that price has been making a series of higher highs and higher lows since the 2020 which coincided with the global pandemic.
If price decides to make another higher high it could break above the previous $132.30 all time high (ATH) set this past summer.
Using Fibonacci extensions we can identify potential upside targets in the $142 area or possibly even higher.
But if price stalls and begins to drift or fall back down we can use support/resistance as well as Fibonacci to identify potential pull back levels of interest most notably in the $100-$115 area.
Currently trading around $130 this morning price could be heading toward a retest of the ATH before ultimately deciding its future direction.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
Take a look at the charts and let us know what you think.
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