Chart of the Day: D.R. Horton Is in a Struggle Versus Higher Interest Rates
While lending is still hot, homebuilding is starting to cool off.
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Homebuilding has been a hot sector this year, the group rising in the double digits into the late March highs before cooling off recently. TheStreet Pro Portfolio Bullpen name D.R. Horton DHI has been a leader in the group.
In the DHI chart below, notice the very strong trend of higher highs and higher lows from those January interim lows. March was a stellar month for the stock but since then it has cooled off considerably. We have been watching this name closely, and perhaps the recent lows, just under $142, may be the price level that holds firm.
The chart is still pretty bullish even as DHI trudges through the mud of this recent correction. Candles are purple/pink, which is bearish on the GoNoGo indicator. Money flow is extremely bearish but way oversold (bottom pane), while stochastics (momentum) is really hanging on here.
We have bracketed the price action within a range (top pane). A break above with some follow-through would be meaningful to re-creating the uptrend.
We'll keep this name in the Bullpen until the situation heats up again.
At the time of publication, TheStreet Pro Portfolio had no positions in any securities mentioned.
