The Homies haven’t blinked! $XHB – August 8, 2023
This is Scott with your Chart of the Day. I want to take a look at the Homebuilders ETF ( NYSEARCA: XHB ).
Dan Fitzpatrick has been talking about the Homebuilders ( NYSEARCA: XHB ). As far as February, January time, I think, he brought this idea to Jim Cramer at Mad Money and it has been a monster call.
Just a beast, despite some of the wall of worry that this chart has had to tackle, including interest rates, inflation, etcetera, etcetera, the Homebuilders ( NYSEARCA: XHB ) have gone up in spite of all of that. I definitely think this is an interesting chart to take a look at because not only has it been a great performer this year, but if I continue to zoom out here, you can see that it is reaching some levels that it was at just before its breakdown in late 2021 and early 2022.
Now what we have is, potentially, a giant cup pattern and a little bit of a handle building right under resistance. And so I am going to set an alert on my software here, right around that 85.20 level, just a few pennies below 85.20. And then look for a breakout above that level for some potential continuation. And maybe a touch of some blue sky territory here, if it can get above some of these previous highs.
Now, there are a bunch of individual home builders that you can look at, I am thinking of things like MHO, M/I Homes ( NYSE: MHO ), this is in a strong uptrend. PHM, Pulte Homes ( NYSE: PHM ) is in a strong uptrend. KB Home ( NYSE: KBH ) is in a strong uptrend, this chart looks great here. A nice little base, holding that 21-day.
The really interesting thing about XHB ( NYSEARCA: XHB ) is the fact that, even though we saw some market volatility, over the last couple of weeks, this stock didn’t break under its 21-day exponential period moving average, that’s the gray line here on the chart. When the rest of the market was breaking down XHB ( NYSEARCA: XHB ) was holding in tight, and so that definitely gets my attention. I love searching for relative strength in a weak market. And it seems like the Homebuilders ( NYSEARCA: XHB ) have some of that.
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