Entering text into the input field will update the search result below

Home-builders Are Nearing Extended Levels

Jan. 11, 2012 11:17 AM ETXHB, HD, TOL, LEN, DHI
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.
Since October 4, 2011 the SPDR S&P Home-builders ETF (NYSEARCA:XHB) has surged sharply higher by more than $6.00 a share. This morning, the XHB is trading higher by 0.24 cents to $18.59 a share. While this rally in the XHB has been nothing short of sensational it is now starting to look overbought and extended. As long as the overall volume remains light the XHB may move a little higher, however, there should be very good short term daily chart resistance around the $19.00 area. Should the XHB pullback and form a good consolidation pattern it could be a buy again, however, at this time it will need to pullback soon.

Some other stocks that are are in the home-builder sector that are trading higher today include Home Depot Inc (NYSE:HD), Toll Brothers Inc (NYSE:TOL), and Lennar Corp (NYSE:LEN). All of these stocks are in up-trends and remain strong on the charts. The only problem with these stocks is that they will need to pullback soon after a little more upside.

Nicholas Santiago
InTheMoneyStocks.com


Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You