DR Horton Is Bouncing After a PullbackHomebuilders have struggled lately as interest rates rose, but the longer-term prospects remain favorable. Today’s chart considers the pullback in DR Horton, the biggest name in the space.
DHI hit a new all-time high of $84.41 on February 11 and pulled back. It’s now bouncing, which may create opportunities for buyers.
Notice the high basing pattern between about $65 and $80. This consolidation was important because it established new support above the previous high from February 2020.
Second is the downward-sloping trend line running from mid-October through mid-January. DHI broke that resistance last month and has remained above it since.
Next, DHI consolidated between $75 and $78 January 28-February 4. It successfully retested that zone this week and is now bouncing.
Finally, sellers tried to push the homebuilder lower today but were quickly rejected. Prices soon eclipsed Tuesday’s high, resulting in a bullish outside day.
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