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.

Contributor Since 2009

InTheMoneyStocks.Com is a research and consulting company focused on mathematical proprietary techniques along with a key understanding of price, pattern and time. Through understanding geometry and other technical analysis methods, InTheMoneyStocks.Com prides itself on avoiding Wall Street hype while calling major and minor moves in the DOW, NASDAQ and S&P, commodities, currencies and stocks. Mission Statement: Our goal is to provide accurate and precise market guidance without the Wall Street hype.
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


Recommended For You

Comments

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.