Homebuilders Humming
Gary S. Morrow | Jan 20, 2021 04:23PM ET
Homebuilders are moving well today. DR Horton Inc (NYSE:DHI), PulteGroup Inc (NYSE:PHM) and Lennar Corporation (NYSE:LEN) are all top 10 S&P 500 gainers. All are up over 5%. Toll Brothers Inc (NYSE:TOL) is also surging 5% and is setting up well for a fresh rally leg. Since early September the stock is been consolidating in a narrowing range after gaining more than 250% from the March lows. Today, shares are bumping up against the top band of this four-month bull pennant. A close above the December peak ($49.50) could spark quite a run. TOL is far from overbought (Daily MACD=Neutral) and has solid support underneath. We regard the stock as a fairly low-risk buy near current levels. On the downside, a close back below $45.00 would violate this week’s low, sending a clear warning sign that more consolidation is ahead.
Note: We have no position.
You can read Gary S. Morrow's original post here .
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