Buying opportunity, or just a fakeout? (June 26, 2012)
BZH
I’m Dan Fitzpatrick at StockMarketMentor.com on Tuesday, June 26th. Let’s look at Beazer Homes ( $BZH ). Look, some housing numbers came out this morning and they weren’t too bad. We’ve had a kind of a series of housing numbers that haven’t been too bad. They’ve been a little inconsistent and generally speaking, more and more folks are starting to see the market as having turned. At least not getting as bad, not getting worse. It’s less bad than before, how about that? But look, on Beazer ( $BZH ), the fifty day moving average has been support. The stock has moved up above there, on fairly decent size volume, and now it’s consolidating in this little box here. You thought I was going to leave it as a circle didn’t you? So here’s what I’d suggest. You’ve got to watch this stock, $2.95 we’ll call it, guess what? $3.00 is some pretty solid resistance at this level. What I’d suggest doing, the market’s going to be pretty volatile, I think you’d be able to get the stock closer to this prior support level sometime over the next couple weeks. If that, if the stock does pull back closer to the fifty day moving average, which will start trickling higher in another day or two. If the stock comes back say twenty, maybe twenty cents we’ll say. That’s when you want to buy Beazer Homes ( $BZH ). On the other hand, if it does start to move above $3.00, go ahead and take a little bit of stock. It’s a breakout; take a little bit of stock. Then you’re involved. If the stock then pulls back a little bit you’re okay because there’s prior resistance. It’s probably going to be support for the stock on any pull back. So, the bottom line is this, Beazer Homes ( $BZH ) has had a heck of a pull back over the last several months, right? Well now that pullback looks to have run its course. I think maybe more starting to get from the beginning of a new uptrend here. Okay, members go to the Strategy Session. I’ve got several more trading ideas that I want you to consider. Free Chart