Here’s a level that Scott thinks is important to watch on $PHM – December 28, 2021PHM
This is Scott with your Chart of the Day. I want to take a look at Pulte Homes ( NYSE: PHM ). I want to point out a level that I think is pretty darn important on this chart, and that is the 56.75 level.
If I go back in time you can see that back here in June Pulte Homes ( NYSE: PHM ) broke below its 50-day moving average. And ever since then, just put in a series of lower highs until it really kind of broke down in September. It then rebounded, and where did it rebound to? The scene of the crime, 56.75. So we hit that level, broke down, and we are just kind of underneath it right now.
The thing that has me a little cautious about this chart is the fact that, yes, we are near a clear level of resistance, and I like that. But we are kind of rallying here on lower than average volume. So I don’t know if this is ready for a strong breakout, especially since it is typically kind of a low volume week anyways.
I think if we can get a daily, and potentially a weekly close above this level this could start a new uptrend for Pulte Homes ( NYSE: PHM ) and be great for the home building sector. I think that it is definitely worth watching and having an alert on maybe for a month or so, because ideally, we see this stock kind of pull back into the moving averages, tighten up, give us a nice little base right under this level before a big breakthrough on volume.
I think that this setup could take a little while to play out but I think that having an alert right around 56.75 on PHM ( NYSE: PHM ) is well worth it. So perhaps set an alert around that level on your platform and we will watch for a breakthrough on volume on the daily and weekly chart.