PulteGroup, Inc. (NYSE: PHM)

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. 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.
Please take a look at the 1 yr. chart of PHM (PulteGroup, Inc) that I have shown below with my added notations:

PHM has formed a very nicely defined upchannel over the last (3) months. A channel is simply formed through the combination of a trend line support that runs parallel to a trend line resistance.  When it comes to a channel any (3) points can start the channel, but it’s the 4^th test and beyond that confirm it. You can see that PHM has multiple test points between the channel resistance (green) and the channel support (blue). Following the PHM channel can provide you with both long and short trading opportunities.

The Tale of the Tape: PHM has formed a common chart pattern known as a channel, in this case, an up-channel. A long opportunity could be entered on a pullback to the channel support, which is currently sitting near $18.50. Short trades could be entered at channel resistance OR if PHM were to break below the channel support.
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