TMHC is the home builder to watch! – November 7, 2024

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This is Scott McGregor at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to take a look at Taylor Morrison Home Corporationn ( NYSE: TMHC ).

Taylor Morrison Home ( NYSE: TMHC ) is in the home builder sector. Let’s take a quick look at XHB ( NYSEARCA: XHB ). XHB ( NYSEARCA: XHB ) is under the 50-day moving average, and that tells me that a lot of home builders have just been going sideways lately, or really not been doing much of anything.

If I look at Lennar ( NYSE: LEN ) here, we’re seeing we’re under the 50-day moving average but finding support down near the 200-day. If I look at PulteGroup ( NYSE: PHM ), it’s also under the 50-day moving average. And so there’s a lot of floundering happening in the home builders.

But Taylor Morrison Home Corporation ( NYSE: TMHC ) is actually outperforming. It’s holding up way better than all of the other home builders. We have this nice month-long consolidation base, above all these moving averages. It did dip under the 50-day, but they bought it right back up.

We can see a pretty clear resistance zone right above that 72.00 level. It’s been sold above 72.00, it was sold up there today so there’s a seller up there. But I think if it can get above and stay above $72.00, then I think this could be in for another leg higher on this pretty strong uptrend.

I would definitely have an alert here on Taylor Morrison ( NYSE: TMHC ) for just under $72.00. And then look for that strong move, and close through that level, coming on volume. Now, I don’t think that this stock is just going to break out on its own. It’s probably going to need most of the sector to go with it.

But the fact that Taylor Morrison ( NYSE: TMHC ) is closer to the highs than all the others that we just looked at, tells me that this stock has a high probability to outperform the rest. So definitely a top watch in the home builder sector here with Taylor Morrison ( NYSE: TMHC ).

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