Here’s your trade on $PHM – November 30, 2023
This is Scott with your Chart of the Day. While higher for longer is the narrative, when it comes to interest rates, homebuilders sure look like rates might come down sooner than later because Pulte Homes ( NYSE: PHM ) is near the highs.
And you’ve got to think with a high-interest rate environment, probably not going to be building too many homes. But if the market is pricing in potential rate cuts into next year, that might be why homebuilders are holding up nicely. Pulte ( NYSE: PHM ) here, is basing beautifully near the highs, just a nice short-base of consolidation and a bit of a volume pickup here today.
Now, I know it was the end of the month and we did see them paint the tape in the last little bit here. A big move up in price, a big spike in volume, but I like this setup right here right now. I definitely think this is one you want to keep an eye on, along with some of the other homebuilders. Because a lot of them look really good and should definitely be on your watch list.
What I want to see here from Pulte ( NYSE: PHM ) is a move-through and a close above this level here. You can see how this level has been acting as resistance for a while. We haven’t been able to get above forever. So I definitely see this as a clear resistance zone and pivot that matters.
I’m going to set an alert on my software, right around that 88.85 zone. And look for a strong move coming through there on volume. That would bring Pulte Homes ( NYSE: PHM ), potentially, to a new all-time high. And you know the deal about stocks that make all-time highs, they tend to keep making them.
Pulte Homes ( NYSE: PHM ) is definitely one we’re watching over at StockMarketMentor.com.
Free Chart