Mid-term buying opportuninty for TMHCHey there!
Let's take a look at technical picture for Taylor Morrison Home Corp NYSE:TMHC .
We have just bounced from the bottom line of clearly defined channel that has been started almost a year ago (from 26th June 2020).
So we can expect an upward direction in this stock's price.
From the Elliot Wave Theory there is also a bullish set up for this stock.
This stock has started the first wave like many other stocks in the end of march 2020 and ended a first wave on 20th October 2020. Afterwards we have a sharp zig-zag correction to the bottom line of the previously defined channel and the wave 3 started in November 2020. The nice leading diagonal pattern shows us that there should be more impulse move upwards. So the closest target price for the current wave should be at least at 34 usd per share. That corresponds 1.618 fibonacci level.
And as the last point we've just bounced from the old resistance level at 28.21 us per share that was holding this stock since 2018.
Summary:
There could be a good long position with an 20% upside potential and take profit at 34.5 usd per share and tight stop loss of about 4% at 27.75 level.
