PulteGroup, Inc., through its subsidiaries, engages in homebuilding and financial services businesses primarily in the United States. The company's Homebuilding segment is involved in the acquisition and development of land primarily for residential purposes within the United States; and the construction of housing on such lands. This segment offers various home designs, including single-family detached, townhouses, condominiums, and duplexes under the Pulte Homes, Del Webb, and Centex names. As of December 31, 2012, this segment had approximately 670 active communities. Its Financial Services segment engages in mortgage banking and title operations. This segment arranges financing through the origination of mortgage loans primarily for homebuyers; sells such loans and related servicing rights; and provides title insurance policies as an agent, as well as examination and closing services to homebuyers.
To review Pulte's stock, please take a look at the 1-year chart of PHM (PulteGroup, Inc.) below with my added notations:
The $18 level has clearly been important to PHM, not only as support from February through July, but also as recent resistance (red). In addition, the stock has formed a trendline of support (green) starting back in August. These two levels combined had PHM stuck within a common chart pattern known as an ascending triangle. At some point, the stock had to break through one of those two levels, and as you can see, it was the $18 resistance that finally broke.
The Tale of the Tape: PHM broke the resistance of its ascending triangle. A long trade could be made on a pullback to $18. A break back below the $18 level would set up a possible short trade and negate the forecast for a move higher.
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