DR Horton (DHI) is part of the housing group and the stock is in a long-term uptrend. I based this trend assessment on three things. First, the 50-day EMA is above the 200-day. Second, the 200-day EMA is rising. Third, the stock hit a 52-week high in July. DHI pulled back after hitting this high and firmed in the broken resistance zone. This is a classic tenet of technical analysis: broken resistance turns support and vice versa. It looks like this pullback is ending because DHI surged around 2% on Monday and the PPO (5,30,1) moved above its 5-day EMA.
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--Arthur Hill CMT
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