D.R. Horton, Inc. (NYSE: DHI)

D.R. Horton, Inc. operates as a homebuilding company. The company engages in the acquisition and development of land; and construction and sale of residential homes in 26 states and 77 markets in the United States primarily under the D.R. Horton, America's Builder name. It builds traditional single-family detached homes; and attached homes, such as town homes, duplexes, triplexes, and condominiums. The company markets and sells its homes primarily through independent real estate brokers. It is also involved in the origination and sale of mortgages, as well as provision of title insurance policies, and examination and closing services primarily to the purchasers of its homes. D.R. Horton, Inc. was founded in 1978 and is headquartered in Fort Worth, Texas.
To review Horton's stock, please take a look at the 1-year chart of DHI (D.R. Horton, Inc.) below with my added notations:
DHI has been trading sideways for the last 2 months. Over that period of time, the stock has formed a clear resistance level at $20 (red). In addition, the stock has also created a strong level of support at $17.50 (blue) that has actually held since mid-August. This rectangle formation on DHI is very helpful in trading because at some point the stock will have to break one of the two levels the pattern has created.

The Tale of the Tape: DHI has clear levels of support ($17.50) and resistance ($20). The possible long positions on the stock would be either on a pullback to $17.50, or on a breakout above $20. The ideal short opportunity would be on a break below $17.50.
Please share this article